Food, drinks and petrol help ease inflation
• Experts hopeful Bank of England can avoid interest rate hike
• RPI also falls to 5.1% from 5.3% in April
Inflation slowed more than expected last month as food prices slipped and the rise in petrol prices eased off, raising hopes that price pressures have now peaked.
Consumer price inflation rose 3.4% on a year ago, down from a 17-month high of 3.7% in April, according to the Office for National Statistics. The rate was below economists' forecasts for 3.5% but still well above the Bank of England's government-set target of 2%.
The ONS said food and non-alcoholic drinks played the biggest part in the slowdown after prices fell slightly between April and May but rose year-on-year. The most influential food products were meat, particularly pork products, and fruit, particularly grapes.
A further large downward effect came from petrol prices, which rose just 0.3% between April and May this year compared with a rise of 2.4% a year ago.
Meanwhile, the broader retail prices index (RPI) fell to 5.1% from 5.3% in April.
Economists and central bank policymakers had been expecting some easing in inflation, largely attributing the spike at the start of this year to one-off effects such as high oil prices and the rise in VAT back to 17.5% after a year at 15% during the recession.
