UK inflation falls to 0.5%

CPI inflation fell to 0.5% in May, down from 0.8% in April, according to the latest figures from the ONS.

The rate was last lower, at 0.3%, in May 2016 in the lead up to the Brexit referendum.

CPIH – the ONS’ headline measure which includes owner occupiers’ housing costs – fell from 0.9% in April to 0.7% in May.

This is also the lowest reading seen since May 2019 when the 12-month rate was also 0.7%. The rate was last lower, at 0.6%, in February 2016.

The ONS says falling prices for fuel and a variety of recreational and cultural goods resulted in the largest downward contributions to the downward change.

SOURCE: Financial Reporter