Bags of potatoes grown in the UK at D& F McCarthy Ltd. A merchant of fresh fruits and vegetables in Norwich, UK, on Tuesday, February 28, 2023. The sharp shortage of power authorities sparked UK supermarkets. Photographer: Chris Ratcliffe/Bloomberg via Getty Em.
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The annual inflation rate in the United Kingdom was 3.4 % in May, in line with the expectations of economists, according to the data issued by the National Statistical Office (ONS) on Wednesday.
ONS initially published data showing an increase of 3.5 % in 12 months to April, but he said later Poor estimation of car tax data has exaggerated printing.
The Statistics Authority said at that time that its general policy is not to review inflation numbers, however, leaving the original data in place. On Wednesday, he said that the corrected vehicle tax data were used when producing the consumer price index in May.
The basic inflation, which excludes more volatile energy, may increase the prices of food, alcohol and tobacco, by 3.5 % in the year to May, from 3.8 % in the twelve months to April.
ONS said that the largest declining contribution to the monthly change in the annual rates of inflation came from the transportation, while the largest contributions – partially met – were of food, furniture and household commodities.
“A variety of escalating price movements means that inflation changed only in May.”
“Air prices decreased this month, compared to a significant rise at the same time last year, as the timing of Easter and school holidays affected the prices. At the same time, fuel costs on the engines witnessed a decrease.”
The British pound rose 0.22 % against the dollar, at $ 1.345, after issuing publications.
In response to the data, the UK Minister of Finance Rachel Reeves said that the Treasury Ministry has made “the options necessary to achieve stability in public financial affairs and obtain inflation under control”, but she admitted “there is more to do it.”
The inflation data is also seen closely by the Bank of England, as it tries to determine the best interest rate path, amid a high rate of inflation with dull economic and economic growth.
It is widely expected that the central bank will hold fixed interest rates at its next meeting on Thursday, taking into account inflationary pressures. Economists expect the policy makers to move to reduce prices by 25 basis points in the next gathering in August.
The Bank of England said earlier this year that the inflation rate is expected to rise to 3.7 % in the third quarter, before it cools until next year.
This urgent news story is updated.
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