UK CPI inflation falls to 1.5%

UK Consumer Prices Index (CPI) inflation fell in the year to May, after the previous month saw its first climb in 10 months.

The Office for National Statistics (ONS) reported CPI grew by 1.5% in the year to May 2014, down from 1.8% in April. Falls in transport services costs, notably air fares, provided the largest contribution to the decrease in the rate. Other large downward effects came from the food & non-alcoholic drinks and clothing sectors. The largest offsetting upward effects came from motor fuels, and recreation and culture. The timing of Easter in April is likely to have had an impact on movements in the index, most notably for air and sea fares. CPIH, which includes the costs faced by owne...