UK Inflation May Fall

UK Inflation May Fall.

The Office of National Statistics (ONS) has released its data for inflation in May. Figures showed that in May inflation fell to 1.5% from 1.8% in April, this was the lowest point for four and a half years.

The fall is likely to be linked to the drop in travel costs, mainly air fares which are thought to be the main contributor. Easter fell in April this year and so this would have had an effect on inflation.

The cost of motor fuels has stopped inflation falling further after more downward effects were seen from food and non-alcoholic drinks. Compared with a year ago fuel costs in April and May were 3% lower despite a slight rise being seen.

Prices in housing, water, electricity, gas & other fuels has the most upward effect on inflation which amounts to a quarter of the total. While food, soft drinks and motor fuel has the most downward effect on inflation.