May CPI rose 2.8% year-on-year, below the 3.0% estimate, easing pressure on the Bank of England to tighten policy further.
UK consumer prices rose 2.8% in May from a year earlier, missing economists’ 3.0% forecast and matching April’s annual rate. Monthly CPI increased 0.2%, half the expected 0.4% gain, following a 0.7% rise in April.
Core inflation also softened, with annual core CPI at 2.6% versus 2.7% expected and a prior 2.5%. The monthly core print came in at 0.3%, below the 0.4% consensus and down from April’s 0.7%.
The data suggest easing price pressures, potentially reducing urgency for further Bank of England rate hikes.