In May 2023, UK inflation held steady at 3.4%, matching economist expectations. This data was published by the Office for National Statistics.
Inflation Data for May
UK inflation for May was recorded at 3.4%, matching the revised figure for April. The April figure had initially been reported as 3.5%, but was corrected due to errors in vehicle tax data.
Key Influencing Factors on Inflation
Transport costs were the main factor contributing to the decrease in the overall inflation rate. However, food, furniture, and household goods continued to apply pressure on inflation. Richard Heys, Acting Chief Economist at the ONS, noted that a variety of counteracting price movements resulted in little change in inflation for May.
Interest Rate Outlook
The inflation data was released just before the Bank of England's monetary policy meeting. It is expected that the central bank will maintain interest rates at 4.25%. Analysts believe that any rate cut will be postponed until August, barring any unforeseen economic changes.
UK inflation data reflects a stable level, but markets are anticipating further moves from the Bank of England and potential fluctuations in oil prices that may impact the economic situation.
