United Kingdom: Inflation is stable in May
Latest reading: Consumer prices rose 2.8% on a year-on-year basis in May, unchanged from the previous month’s reading. The reading was below market expectations, but was still above the Bank of England’s 2.0% target.
Relative to the prior month’s figures, price pressures were higher for transportation in May (+6.8% on a year-on-year basis vs +4.5% in April). In contrast, there were reduced price pressures for recreation and culture (+1.5% vs +1.7% in April) and food and non-alcoholic beverages (+2.2% vs +3.1% in April).
Meanwhile, core consumer prices increased 2.6% on a year-on-year basis in May, following a 2.4% increase in the prior month.
Finally, consumer prices rose 0.21% in May in month-on-month terms, following a 0.75% rise in the prior month.