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Inflation in the UK in May was higher than forecast


Haziran, 21 2023
watermark Economic news

According to the Office for National Statistics (ONS) of Great Britain, consumer prices in the country increased by 8.7% in annual terms. This means that inflation remained at the level of the previous month, which was the lowest in the last year. Price growth was expected to slow to 8.4%.


In May, prices for consumer goods increased by 0.7% compared to the previous month, while an increase of 0.5% was forecast. In April, this figure was 1.2%.


Core inflation (CPI Core index, excluding food, alcohol, tobacco and energy) rose by 7.1% in annual terms last month, which was the highest level since March 1992. On a monthly basis, the indicator increased by 0.8%. In April, core inflation was 6.8% and 1.3%, respectively.


Retail prices (RPI index) increased by 11.3% year-on-year in May (against 11.4% in April). The RPI index is used by British employers when negotiating salaries. The difference in the dynamics of the CPI and RPI indices is due to the consideration of housing costs in RPI, as well as the different weight of air fares, insurance and gasoline prices.


On a monthly basis, the RPI index rose 0.7% after rising 1.5% in April.


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