The UK Consumer Prices Index (CPI) 12-month rate came in at 2.4% in May, unchanged from April’s reading and against 2.5% anticipated, the UK Office for National Statistics (ONS) reported this Wednesday. 

Meanwhile, the core inflation gauge (excluding volatile food and energy items) arrived at 2.1% y/y, same as that seen in the previous month while meeting the consensus forecast. 

The monthly figures showed that the UK consumer prices steadied 0.4% in May, matching 0.4% expectations.  

Main Points (via ONS):

“Rising motor fuel prices produced the largest upward contribution to the change in the rate between April and May 2018.

There were also large upward effects from air and sea fares, which rose between April and May this year but fell between the same two months a year ago, influenced by the timing of Easter.

Partially offsetting downward effects came from price changes for games, domestic electricity, food and non-alcoholic beverages, and furniture and furnishings.”

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