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MNI BRIEF: UK Inflation At BOE Target For First Time Since July 2021

Headline UK inflation at near three-year low as BOE meets to decide on rate policy.

 UK headline inflation fell to 2.0% in May, hitting the Bank of England's target level for the first time sice July 2021, data released by the Office for National Statistics on Wednesday showed.

On a monthly basis, CPI rose by 0.3% in May 2024, compared with a rise of 0.7% in May 2023. The largest downward contribution to the annual rates came from food, with prices falling this year but rising a year ago, whilst the largest upward contribution came from motor fuels, with prices rising slightly this year but falling a year ago. Core CPI rose by 3.5% in the year to May, down from 3.9% in April; the CPI goods annual rate fell from negative 0.8% to negative 1.3%, while the CPI services annual rate eased from 5.9% to 5.7%.

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 UK headline inflation fell to 2.0% in May, hitting the Bank of England's target level for the first time sice July 2021, data released by the Office for National Statistics on Wednesday showed.

On a monthly basis, CPI rose by 0.3% in May 2024, compared with a rise of 0.7% in May 2023. The largest downward contribution to the annual rates came from food, with prices falling this year but rising a year ago, whilst the largest upward contribution came from motor fuels, with prices rising slightly this year but falling a year ago. Core CPI rose by 3.5% in the year to May, down from 3.9% in April; the CPI goods annual rate fell from negative 0.8% to negative 1.3%, while the CPI services annual rate eased from 5.9% to 5.7%.

Keep reading...Show less