Inflation hits FOUR-YEAR low of just 0.5 per cent as fuel and clothing prices tumble – but food costs rise
- The CPI inflation rate has fallen to 0.5 per cent, the lowest level for four years
- Record fall in fuel and reductions in clothing contributed to the headline figure
- Only food and drink in positive territory compared to April’s 12-month figure
- Here’s how to help people impacted by Covid-19
UK inflation hit a four-year low last month after a drops in fuel and clothing prices.
The CPI measure slumped to 0.5 per cent in May, down from 0.8 per cent and the lowest level since June 2016.
The headline annual rate was slightly offset by a rise in the costs of food and non-alcoholic drinks.
The true figure could be even lower – as the Office for National Statistics said an alternative basket of goods, removing items not available due to the coronavirus crisis, gave a reading of 0.4 per cent.
It comes as fuel prices tumbled by 16.7 per cent in May – the biggest fall on record – while energy costs dropped 7 per cent.
The CPI measure slumped to 0.5 per cent in May, down from 0.8 per cent and the lowest level since June 2016
Clothing and footwear price tags fell 3.1 per cent as retailers resorted to heavy discounts amid the lockdown.
Food and non-alcoholic drinks were the only element of the CPI measure that went up in the 12 months to May, compared to the 12 months to April – 0.04 per cent higher.
Jonathan Athow, ONS deputy national statistician for economic statistics, said: ‘The growth in consumer prices again slowed to the lowest annual rate in four years.
‘The cost of games and toys fell back from last month’s rises while there was a continued drop in prices at the pump in May, following the huge crude price falls seen in recent months.
‘Outside these areas, we are seeing few significant changes to the prices in the shops.’
Food and non-alcoholic drinks were the only element of the CPI measure that went up in the 12 months to May, compared to the 12 months to April – 0.04 per cent higher