UK inflation sees further surprise fall to 2.8%

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The UK's inflation rate posted another surprise drop in May, falling to 2.8%, as the lack of activity in the UK continues to bring prices down sharply.

While many economists had expected the Consumer Prices Index (CPI) to hold at 3% in May, after the steep drop in April's reading, the fall in prices shows no sign of letting up as yet. The largest downward pressures to the change in CPI annual inflation in May came from motor fuels and food and non-alcoholic beverages, according to the Office for National Statistics (ONS). While the largest upward pressures to the change in CPI annual inflation came from air and sea transport, where the timing of Easter had a significant impact on the April to May movement. The CPI stands at 122.8 in ...

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