21 June 2023

The UK's inflation rate stayed at 8.7% in May, which is the same as the April rate.

The CPI rose by 8.7% in the 12 months to May 2023. Unchanged from April but down from a recent peak of 11.1% in October 2022. The Office for National Statistics (ONS) suggests that the October 2022 peak was the highest annual inflation rate since 1981. The monthly rate in May 2023 was 0.7%, the same as in May last year.

According to data released by the ONS today, rising prices for air travel, recreational and cultural goods and services, and second-hand cars resulted in the largest upward contributions to inflation. Costs for motor fuel fell, putting the biggest downward pressures on inflation. While prices for food and non-alcoholic beverages rose in May 2023 but by less than in May 2022, this also lead to an easing in the annual rates.

Chancellor, Jeremy Hunt, said:

‘‘We know how much high inflation hurts families and businesses across the country, and our plan to halve the rate this year is the best way we can keep costs and interest rates down.

We will not hesitate in our resolve to support the Bank of England as it seeks to squeeze inflation out of our economy while also providing targeted support with the cost of living.”

Keep an eye out for our update on the upcoming Bank of England bank rates, set to be released tomorrow.

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