Inflation remains at 2.8%, slightly lower than expected
Summary
Inflation in the UK stayed at 2.8% in the year to May, which was a little lower than experts expected. Prices rose fastest for transport costs, while increases in food prices slowed down. The ongoing war in Iran is expected to push inflation higher later this year.Key Facts
- Inflation was 2.8% from June 2023 to May 2024, below the expected 3%.
- Transport costs, including airfares, vehicle taxes, and petrol, rose the fastest.
- Food price increases slowed but are still higher than last year.
- Household energy prices dropped in April, helping slow inflation.
- Domestic heating oil prices fell after previous sharp rises.
- Economists think inflation could reach 3.5% to 4% in late 2024 due to the Iran war’s impact.
- The Bank of England is expected to keep interest rates steady at 3.75% in its next decision.
- The UK government says it is supporting families with energy bill cuts and fuel duty freezes.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.