UK Inflation Softens In May

(RTTNews) - UK consumer price inflation softened in May largely due to easing transportation cost, data from the Office for National Statistics revealed on Wednesday.

The consumer price index registered an annual increase of 3.4 percent, slightly slower than the 3.5 percent rise seen in April. However, inflation was slightly above forecast of 3.3 percent.

On a monthly basis, the consumer price index gained only 0.2 percent, much slower than the 1.2 percent rise seen in April.

Core inflation that strips out prices of energy, food, alcohol and tobacco eased to 3.5 percent, in line with expectations, from 3.8 percent in the previous month.

The CPI goods climbed at a faster pace of 2.0 percent after a 1.7 percent rise, while services inflation slowed to 4.7 percent from 5.4 percent.