United Kingdom: Inflation dips in May
Consumer prices rose 0.3% in May over the previous month, down from April’s 0.6% rise. May’s reading was underpinned by higher prices for furniture, household equipment and maintenance; and clothing and footwear.
Inflation decreased from 2.1% to 2.0%, hitting the Bank of England’s (BoE) target. Core inflation—which excludes food and energy costs—fell from 1.8% to 1.7%.
Muted price pressures should continue to give the Central Bank room to hold rates in the near-term to support the economy, amid a fraught political panorama and frail economic momentum in the Euro area.