UK inflation higher than forecast in May amid rising food prices

UK inflation was higher than expected in May as rising food prices offset a drop in air fares and transport costs, new official figures show.

The rate of Consumer Prices Index (CPI) inflation fell to 3.4% in May from 3.5% in April, the Office for National Statistics (ONS) said.

However, the ONS said that an error in vehicle tax data collected meant April’s CPI rate should have been 3.4% – but that it was not revising the official figure.

School holidays

Most economists were expecting the CPI rate to come in at 3.3% for May as price rises cooled following a raft of bill increases the previous month, that pushed inflation to the highest level in more than a year.

ONS acting chief economist Richard Heys said: “A variety of counteracting price movements meant inflation was little changed in May.

“Air fares fell this month, compared with a large rise at the same time last year, as the timing of Easter and school holidays affected pricing. Meanwhile, motor fuel costs also saw a drop.

“These were partially offset by rising food prices, particularly items such as chocolates and meat products. The cost of furniture and household goods, including fridge freezers and vacuum cleaners, also increased.”