UK inflation remains stagnant at 8.7% in May

Core inflation rises

UK inflation remained stagnant in May at 8.7%, coming in higher than the 8.4% expected by economists.

The Office for National Statistics reported that core inflation, which excludes energy, food, alcohol and tobacco, rose by 7.1% in May, up from 6.8% in April and the highest rate since March 1992. The ONS attributed the unchanged inflation rates to rising prices for air travel, recreational and cultural goods and services and second-hand cars, while the falling price of motor fuel offset the increases. Meanwhile food inflation has fallen, but still remained high. Food and non-alcoholic drink prices rose 0.9% between April and May 2023, compared with a 1.5% increase between the same tw...