Latest news with #UKConsumerPricesIndex
Yahoo
19-06-2025
- Business
- Yahoo
UK inflation drops slightly to 3.4% in May 2025
The UK Consumer Prices Index (CPI) increased by 3.4% over the 12 months ended May 2025, a slight decline from the 3.5% rise in the year leading up to April, according to data released by the Office for National Statistics (ONS). May saw a CPI increase of 0.2%, marginally lower than the 0.3% increase recorded in May of the previous year. The most significant decrease in the monthly variation of the CPI annual rate was attributed to the transport sector. Upward pressures on the rate were primarily driven by increases in the food sector, along with furniture and household goods. Core CPI, which excludes the volatile categories of energy, food, alcohol and tobacco, saw a 3.5% increase in the year ending in May - a decrease from the 3.8% rise recorded in the year to April. The annual rate for CPI goods climbed from 1.7% to 2.0%, while the annual rate for CPI services decelerated from 5.4% to 4.7%. British Retail Consortium director of Insight Kris Hamer stated: 'Headline inflation held at 3.4% as higher bills and new business costs introduced in April continued to filter through into the economy. Worryingly for consumers, the price of the weekly shop rose once again as food inflation continued its upward trajectory, reaching its highest level since February last year. However, there were some bright spots. Deflation persisted in the clothing and footwear category and within the food category breakfast items such as eggs, bread and cereals fell in price on the month, offering some relief.' Negative impacts from various sectors were somewhat counterbalanced by the rising costs of food and non-alcoholic beverages, which saw a 4.4% price increase over the 12 months to May, an acceleration from the 3.4% increase in the preceding year to April. This rate for May is the highest since February 2024, when it reached 5%. In terms of monthly changes, prices for food and non-alcoholic beverages climbed by 0.7% in May, contrasting with a decrease of 0.3% during the same month in the previous year. Hamer added: 'Since October, retailers have warned that the costs from the Chancellor's [October 2024] Budget could not be fully absorbed and would inevitably lead to higher prices for shoppers. Food inflation is now above 4% and looks set to increase further later in the year. The government must now take action to relieve cost pressures retailers are facing. Ensuring no shop pays more under business rates reform would be a meaningful step forward, offering much needed relief to an industry that continues to see prices, job losses and store closures all rising.' "UK inflation drops slightly to 3.4% in May 2025" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
South Wales Guardian
18-06-2025
- Business
- South Wales Guardian
UK inflation to edge higher if oil prices push up energy costs, experts warn
Experts said that if global oil and gas prices continue to soar then this could drive energy costs higher. The latest figures from the Office for National Statistics (ONS) showed the rate of UK Consumer Prices Index (CPI) was 3.4% in May – slightly higher than the 3.3% forecast by most economists. It came in lower than the 3.5% recorded for April – however, the ONS has since said that that figure was incorrect due to an error in how it initially calculated price rises, and it should have been 3.4%. Inflation remaining elevated was largely due to food prices rising in shops, with items like chocolate, jam and meat spiking last month. Food and non-alcoholic drink prices rose by 4.4% in the year to May – the highest level in more than a year. The end of Easter sales on furniture and homeware is also thought to have contributed to prices jumping across the category between and April and May. On the other hand, air fares, petrol and diesel prices fell between April and May, helping to balance out the overall inflation rate. Experts have said that inflation is set to remain elevated over the coming months, particularly if global oil prices continue to spike. Laith Khalaf, head of investment analysis at AJ Bell, said: 'The escalation of conflict in the Middle East has bumped up the oil price, which will put upward pressure on inflation if sustained.' The price of Brent crude oil has risen to a four-month high in recent days since Israel launched an attack on Iran's nuclear programme and conflict between the two countries has escalated. It has stoked fears over possible disruption to the supply of crude in the Middle East – with Iran a significant exporter of oil, and the potential for oil and gas passing through the Strait of Hormuz to be obstructed. Higher energy prices – which have not been factored into the latest ONS data – threaten to push up inflation in the UK. Rob Wood, chief UK economist for Pantheon Macroeconomics, said he was expecting inflation to 'bounce around these rates for the rest of the year' and to peak at 3.6% in September when energy prices spike. This peak could rise to as much as 3.8% if oil and natural gas prices continue to soar, he said. Matt Swannell, chief economic advisor to the EY Item Club, said: 'Headline inflation is likely to edge upwards over the next few months, and the increase could be more pronounced if the recent rise in Brent crude oil prices is sustained. 'But we expect inflation to cool from October, as the positive contribution from the energy category wanes.' Experts also said that the Bank of England was facing a difficult task in setting interest rates amid price volatility in global markets. Most economists expect the Bank to keep UK rates the same, at 4.25%, when it makes the next announcement on Thursday. Mr Wood said policymakers are likely to 'proceed cautiously' with just one more cut to rates this year, expected in November, amid 'sticky' inflation. Elsewhere, the ONS's data showed the statisticians preferred measure of inflation, Consumer Prices Index including owner occupiers' housing (CPIH), fell to 4% in May from 4.1% in April. Meanwhile, the Retail Prices Index (RPI) rate of inflation fell to 4.3% from 4.5%. However, the ONS said April's RPI figure was also 0.1 percentage points too high, and should have been 4.4%. This happened because of an error that meant the effect of vehicle tax hikes in April was overstated in the data collected for the month. The ONS said it would not be revising the official published figures, in line with its policy which only carries out revisions in exceptional circumstances.
North Wales Chronicle
18-06-2025
- Business
- North Wales Chronicle
UK inflation to edge higher if oil prices push up energy costs, experts warn
Experts said that if global oil and gas prices continue to soar then this could drive energy costs higher. The latest figures from the Office for National Statistics (ONS) showed the rate of UK Consumer Prices Index (CPI) was 3.4% in May – slightly higher than the 3.3% forecast by most economists. It came in lower than the 3.5% recorded for April – however, the ONS has since said that that figure was incorrect due to an error in how it initially calculated price rises, and it should have been 3.4%. Inflation remaining elevated was largely due to food prices rising in shops, with items like chocolate, jam and meat spiking last month. Food and non-alcoholic drink prices rose by 4.4% in the year to May – the highest level in more than a year. The end of Easter sales on furniture and homeware is also thought to have contributed to prices jumping across the category between and April and May. On the other hand, air fares, petrol and diesel prices fell between April and May, helping to balance out the overall inflation rate. Experts have said that inflation is set to remain elevated over the coming months, particularly if global oil prices continue to spike. Laith Khalaf, head of investment analysis at AJ Bell, said: 'The escalation of conflict in the Middle East has bumped up the oil price, which will put upward pressure on inflation if sustained.' The price of Brent crude oil has risen to a four-month high in recent days since Israel launched an attack on Iran's nuclear programme and conflict between the two countries has escalated. It has stoked fears over possible disruption to the supply of crude in the Middle East – with Iran a significant exporter of oil, and the potential for oil and gas passing through the Strait of Hormuz to be obstructed. Higher energy prices – which have not been factored into the latest ONS data – threaten to push up inflation in the UK. Rob Wood, chief UK economist for Pantheon Macroeconomics, said he was expecting inflation to 'bounce around these rates for the rest of the year' and to peak at 3.6% in September when energy prices spike. This peak could rise to as much as 3.8% if oil and natural gas prices continue to soar, he said. Matt Swannell, chief economic advisor to the EY Item Club, said: 'Headline inflation is likely to edge upwards over the next few months, and the increase could be more pronounced if the recent rise in Brent crude oil prices is sustained. 'But we expect inflation to cool from October, as the positive contribution from the energy category wanes.' Experts also said that the Bank of England was facing a difficult task in setting interest rates amid price volatility in global markets. Most economists expect the Bank to keep UK rates the same, at 4.25%, when it makes the next announcement on Thursday. Mr Wood said policymakers are likely to 'proceed cautiously' with just one more cut to rates this year, expected in November, amid 'sticky' inflation. Elsewhere, the ONS's data showed the statisticians preferred measure of inflation, Consumer Prices Index including owner occupiers' housing (CPIH), fell to 4% in May from 4.1% in April. Meanwhile, the Retail Prices Index (RPI) rate of inflation fell to 4.3% from 4.5%. However, the ONS said April's RPI figure was also 0.1 percentage points too high, and should have been 4.4%. This happened because of an error that meant the effect of vehicle tax hikes in April was overstated in the data collected for the month. The ONS said it would not be revising the official published figures, in line with its policy which only carries out revisions in exceptional circumstances.
Powys County Times
18-06-2025
- Business
- Powys County Times
UK inflation to edge higher if oil prices push up energy costs, experts warn
UK inflation was higher than expected last month as economists raised concerns that escalating conflict in the Middle East could push up the cost of living. Experts said that if global oil and gas prices continue to soar then this could drive energy costs higher. The latest figures from the Office for National Statistics (ONS) showed the rate of UK Consumer Prices Index (CPI) was 3.4% in May – slightly higher than the 3.3% forecast by most economists. It came in lower than the 3.5% recorded for April – however, the ONS has since said that that figure was incorrect due to an error in how it initially calculated price rises, and it should have been 3.4%. Inflation remaining elevated was largely due to food prices rising in shops, with items like chocolate, jam and meat spiking last month. Food and non-alcoholic drink prices rose by 4.4% in the year to May – the highest level in more than a year. The end of Easter sales on furniture and homeware is also thought to have contributed to prices jumping across the category between and April and May. On the other hand, air fares, petrol and diesel prices fell between April and May, helping to balance out the overall inflation rate. Experts have said that inflation is set to remain elevated over the coming months, particularly if global oil prices continue to spike. Laith Khalaf, head of investment analysis at AJ Bell, said: 'The escalation of conflict in the Middle East has bumped up the oil price, which will put upward pressure on inflation if sustained.' The price of Brent crude oil has risen to a four-month high in recent days since Israel launched an attack on Iran's nuclear programme and conflict between the two countries has escalated. It has stoked fears over possible disruption to the supply of crude in the Middle East – with Iran a significant exporter of oil, and the potential for oil and gas passing through the Strait of Hormuz to be obstructed. Higher energy prices – which have not been factored into the latest ONS data – threaten to push up inflation in the UK. Rob Wood, chief UK economist for Pantheon Macroeconomics, said he was expecting inflation to 'bounce around these rates for the rest of the year' and to peak at 3.6% in September when energy prices spike. This peak could rise to as much as 3.8% if oil and natural gas prices continue to soar, he said. Matt Swannell, chief economic advisor to the EY Item Club, said: 'Headline inflation is likely to edge upwards over the next few months, and the increase could be more pronounced if the recent rise in Brent crude oil prices is sustained. 'But we expect inflation to cool from October, as the positive contribution from the energy category wanes.' Experts also said that the Bank of England was facing a difficult task in setting interest rates amid price volatility in global markets. Most economists expect the Bank to keep UK rates the same, at 4.25%, when it makes the next announcement on Thursday. Mr Wood said policymakers are likely to 'proceed cautiously' with just one more cut to rates this year, expected in November, amid 'sticky' inflation. Elsewhere, the ONS's data showed the statisticians preferred measure of inflation, Consumer Prices Index including owner occupiers' housing (CPIH), fell to 4% in May from 4.1% in April. Meanwhile, the Retail Prices Index (RPI) rate of inflation fell to 4.3% from 4.5%. However, the ONS said April's RPI figure was also 0.1 percentage points too high, and should have been 4.4%. This happened because of an error that meant the effect of vehicle tax hikes in April was overstated in the data collected for the month.
Glasgow Times
18-06-2025
- Business
- Glasgow Times
UK inflation to edge higher if oil prices push up energy costs, experts warn
Experts said that if global oil and gas prices continue to soar then this could drive energy costs higher. The latest figures from the Office for National Statistics (ONS) showed the rate of UK Consumer Prices Index (CPI) was 3.4% in May – slightly higher than the 3.3% forecast by most economists. It came in lower than the 3.5% recorded for April – however, the ONS has since said that that figure was incorrect due to an error in how it initially calculated price rises, and it should have been 3.4%. Inflation remaining elevated was largely due to food prices rising in shops, with items like chocolate, jam and meat spiking last month. Food and non-alcoholic drink prices rose by 4.4% in the year to May – the highest level in more than a year. The end of Easter sales on furniture and homeware is also thought to have contributed to prices jumping across the category between and April and May. On the other hand, air fares, petrol and diesel prices fell between April and May, helping to balance out the overall inflation rate. Experts have said that inflation is set to remain elevated over the coming months, particularly if global oil prices continue to spike. Laith Khalaf, head of investment analysis at AJ Bell, said: 'The escalation of conflict in the Middle East has bumped up the oil price, which will put upward pressure on inflation if sustained.' The price of Brent crude oil has risen to a four-month high in recent days since Israel launched an attack on Iran's nuclear programme and conflict between the two countries has escalated. It has stoked fears over possible disruption to the supply of crude in the Middle East – with Iran a significant exporter of oil, and the potential for oil and gas passing through the Strait of Hormuz to be obstructed. Higher energy prices – which have not been factored into the latest ONS data – threaten to push up inflation in the UK. Rob Wood, chief UK economist for Pantheon Macroeconomics, said he was expecting inflation to 'bounce around these rates for the rest of the year' and to peak at 3.6% in September when energy prices spike. This peak could rise to as much as 3.8% if oil and natural gas prices continue to soar, he said. Matt Swannell, chief economic advisor to the EY Item Club, said: 'Headline inflation is likely to edge upwards over the next few months, and the increase could be more pronounced if the recent rise in Brent crude oil prices is sustained. 'But we expect inflation to cool from October, as the positive contribution from the energy category wanes.' Experts also said that the Bank of England was facing a difficult task in setting interest rates amid price volatility in global markets. Most economists expect the Bank to keep UK rates the same, at 4.25%, when it makes the next announcement on Thursday. Mr Wood said policymakers are likely to 'proceed cautiously' with just one more cut to rates this year, expected in November, amid 'sticky' inflation. Elsewhere, the ONS's data showed the statisticians preferred measure of inflation, Consumer Prices Index including owner occupiers' housing (CPIH), fell to 4% in May from 4.1% in April. Meanwhile, the Retail Prices Index (RPI) rate of inflation fell to 4.3% from 4.5%. However, the ONS said April's RPI figure was also 0.1 percentage points too high, and should have been 4.4%. This happened because of an error that meant the effect of vehicle tax hikes in April was overstated in the data collected for the month. The ONS said it would not be revising the official published figures, in line with its policy which only carries out revisions in exceptional circumstances.
