Lower Post-Easter Transit Costs Dampen May..>

UK DATA: Lower Post-Easter Transit Costs Dampen May CPI

-UK May CPI +2.0% y/y vs +2.1% in Apr

-UK May Core CPI +1.7% y/y vs +1.8% in Apr, lowest since Jan 2017

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Sliding transit costs following the Easter travel period dampened 

consumer price inflation in May, despite a sharp rise in motor fuel 

costs last month. Passenger fares across all major transport services 

accounted for 0.2 percentage points of the fall in CPI to an annual rate 

of 2.0%, in line with the MNI median and the Bank of England staff 

forecast. Fuels and lubricant prices jumped by 2.8% between April and 

May, following a sharp rice in crude oil prices through the end of 

April. However, fuel prices increased even more sharply between April 

and May of last year, resulting in a slightly negative effect on the 

change in CPI.