United Kingdom Inflation Rises to 2.7% in May

In May, UK Consumer Prices Index grew by 2.7 percent yoy, up from 2.4 percent in April due to a record rise in air fares and higher fuel prices.
ONS | Nuno Fontes | nuno@tradingeconomics.com 6/18/2013 10:05:40 AM
Rises in air fares and clothing prices were the largest contributors to the rise in inflation. Motor fuels also had an upward effect. Average petrol prices fell by 3.1 pence a litre on the month but they fell by a larger 4.5 pence a litre between April and May 2012. Similarly diesel prices fell by less between April and May 2013 than between the same two months a year earlier. There were comparatively modest upward contributions from three other sectors: furniture, household equipment and maintenance, alcohol and tobacco and recreation and culture.

The only notable, but relatively small, downward contribution came from the food and non-alcoholic drinks sector. The downward effects came from a variety of food categories (most notably sugar, jam, syrups, chocolate and confectionery, meat and vegetables) but these were partially counterbalanced by price rises from non-alcoholic drinks.

Taking a longer term view, the three main contributors to the 12-month inflation rate in the last five years have been food and non-alcoholic beverages, housing, water, electricity, gas and other fuels and transport (including motor fuels). Combined, these three sectors have, on average, accounted for over half of the 12-month inflation rate each month.

United Kingdom Inflation Rises to 2.7% in May