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- UK CPI inflation accelerates in May, output prices rise
UK CPI inflation accelerates in May, output prices rise
Consumer
price inflation in the
The rate of
inflation rose to 2.7 percent in May from 2.4 percent in April. Economists
expected the rate to rise to 2.6 percent.
The largest
upward contributions to the change in the inflation rate came from transport,
notably air transport and motor fuels, as well as clothing, according to the
statistical office.
On a
monthly basis, CPI rose 0.2 percent, at the same pace as in the previous month.
Economists had forecast the index to rise 0.1 percent.
An
experimental measure of consumer price inflation including owner occupiers'
housing costs, grew 2.5 percent in the year to May, faster than 2.2 percent
increase in April. The retail price index rose 3.1 percent year-on-year as
expected.
Separately,
the statistical office reported that the output price inflation at British
manufacturers rose to 1.2 percent in May from 0.9 percent in April. This,
however, was below 1.4 percent expected by economists.
Between
April and May, factory gate prices remained unchanged, in line with forecasts.
The core factory gate prices, that excludes the more volatile food, beverages,
tobacco and petroleum products, rose 0.8 percent year-on-year compared with an
expected 0.9 percent rise.
In the year
to May, input costs faced by manufacturers rose 2.2 percent. This compared with
forecast of 2.5 percent increase and follows a 0.1 percent fall in April. On a
monthly basis, input prices fell 0.3 percent while expectations were for a flat
outcome.
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