UK inflation rate slows in May

Consumer Prices Index (CPI) annual inflation - the Government's target measure - fell to 2.2 per cent in May, down from 2.3 per cent in April, according to the Office for National Statistics (ONS).

Annual inflation measured by the Retail Prices Index (RPI) - which includes housing costs such as mortgage interest payments and council tax - was -1.1 per cent in May, compared with -1.2 per cent in April.

The largest downward pressure on CPI inflation came from food and non-alcoholic beverages, in part due to meat prices rising by less than a year ago.

Housing and household services also contributed to the decline, mainly due to electricity bills, where tariffs fell this year.

The largest upward pressure on the CPI came from alcoholic beverages and tobacco, reflecting the increase in excise duty in this year's budget. Last year this effect was seen in April.

Further upward pressures came from recreation and culture, including an effect from recording media such as pre-recorded DVDs where prices rose this year but fell a year ago.

The main factors affecting the CPI also affected the RPI, although the RPI also experienced an upward pressure from housing where the largest effect came from mortgage interest payments.

RPIX inflation - the all-items RPI excluding mortgage interest payments - was 1.6 per cent in May, down from 1.7 per cent in April.