May CPI Slows to 4-year Low.................>

UK DATA: May CPI Slows to 4-year Low

-----------------------------------------------------------

- MAY CPI 0.0% M/M, +0.5% Y/Y VS +0.8% Y/Y APR

- MAY CORE CPI 0.0% M/M, +1.2% Y/Y VS +1.4% Y/Y APR

- MAY OUTPUT PPI -0.3% M/M; -1.4% Y/Y VS -0.7% Y/Y APR

- MAY INPUT PPI +0.3% M/M; -10.0% Y/Y VS -10.2% Y/Y APR

----------------------------------------------------------- 

Y/Y CPI ticked down to 0.5% in May, the lowest rate since Jun 2016. May's y/y

decrease was led by a drop prices for transport and recreation and culture.

Fuels and lubricants showed the largest downward contribution, shaving off

0.15pp from price growth. Prices for recording media and games slowed in May,

subtracting 0.07pp from CPI. The largest decline in prices was seen for clothing

and footwear (-3.1%), followed by transport (-1.7%), while the largest gain was

recorded by communication (+4.0%). Input PPI fell sharply again by 10.0%, while

output PPI only cooled by 1.4%. Both indicators declined due to falling oil

prices, with petrol prices showing a record fall in May.