The annual inflation rate in the UK decreased to 2% in May 2024, compared to 2.3% in April and in-line with market forecasts of 2.0%.
This is the lowest annual inflation seen since July 2021.
The inflation returned to the Bank of England’s 2% target.
The annual core inflation rate in the UK slowed for a fourth consecutive month to 3.5% in May 2024, pointing to the lowest since October 2021 and matching market forecasts.
On a monthly basis, core consumer prices increased by 0.5%, the least in four months, after a 0.9% rise in April.
Meanwhile, the annual core CPI which excludes prices for energy, food, alcohol and tobacco rose 3.5%, down from 3.9% in April.
Factory gate prices of goods produced by UK manufacturers rose 1.7% year-on-year in May 2024, accelerating from a 1.1% increase in the previous month. On a monthly basis, output producer prices fell 0.1%, the first decline this year, against forecasts of a 0.1% increase.
ETFs: (FXB), (EWU), (FKU), (EWUS), (FLGB).
Currency: (GBP:USD)
