UK inflation rate in May back to 2% target, matching forecasts

Consumer prices rises 2% at annualized pace in May, lowest since July 2021

By Tuba Ongun

The annual consumer inflation rate in the UK eased to the Bank of England's target of 2%, in line with expectations, according to official data released on Wednesday.

The figure decreased from 2.3% in April and hit its lowest level since July 2021, the Office for National Statistics data showed.

The decline was mainly driven by a slowdown in food prices, which rose by 1.7% in May compared to 2.9% in the prior month.

Core inflation, excluding volatile food and energy prices, also cooled to 3.5% in May, the lowest since Oct. 2021.

On a monthly basis, the Consumer Prices Index gained 0.3% in May and remained stable as compared to April.

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