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Data snap uk inflation rate slows in may - China Digital Pocket Scales - Digital Carat Scale Manufa by he ni





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Data snap uk inflation rate slows in may - China Digital Pocket Scales - Digital Carat Scale Manufa by
Article Posted: 02/12/2015
Article Views: 222
Articles Written: 1145
Word Count: 389
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Data snap uk inflation rate slows in may - China Digital Pocket Scales - Digital Carat Scale Manufa


 
Business,Business News,Business Opportunities
By Jason Douglas and Ilona Billington

LONDON--The annual rate of inflation in the U.K. slowed in May to its lowest level in more than two years, official data showed Tuesday.

The Office for National Statistics said the consumer prices index rose 2.8% on the year in May, compared with a rise of 3% in April. Economists had expected the annual rate of inflation to remain at 3%.

The annual rate is the lowest since November 2009, the ONS said. Price increases for food, fuels and energy were substantially weaker than a year earlier, aiding a slowdown in the overall rate, data showed.

Prices fell 0.1% in May compared with April--the first April-to-May fall in prices since the ONS began calculating the consumer price index in 1996, the ONS said. The fall in the month-on-month rate benefited from a fall in gasoline prices.

The slowdown in the annual rate of inflation should reassure policy makers at the Bank of England that price pressures in the U.K. economy are easing. Rate-setters expect inflation to cool to its 2% target by the middle of next year.

However, the data showed core inflation, which excludes volatile prices such as energy, food, alcohol and tobacco, accelerated in May, rising to an annual rate of 2.2% from 2.1% in April.

An alternative measure of inflation, the retail prices index, also slowed in May. RPI inflation decelerated to 3.1% on an annual basis from 3.5% in April, and was flat month-on-month, the ONS said.

Separately Tuesday, ONS data showed U.K. house prices rose 1.1% on the month in May, the largest rise since March last year.

Write to Jason Douglas at jason.douglas@dowjones.com and ilona.billington@dowjones.comData snap uk inflation rate slows in may - China Digital Pocket Scales - Digital Carat Scale ManufacturerData snap uk inflation rate slows in may - China Digital Pocket Scales - Digital Carat Scale ManufacturerData snap uk inflation rate slows in may - China Digital Pocket Scales - Digital Carat Scale ManufacturerData snap uk inflation rate slows in may - China Digital Pocket Scales - Digital Carat Scale Manufacturer

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