Record drop in fuel prices in May helps UK inflation fall to lowest level in four years, official figures show

Time 1 year ago

A record drop in fuel prices helped UK inflation fall to its lowest level in four years in May, official figures have shown.

The Office for National Statistics (ONS) said the rate of consumer price index inflation fell to 0.5 per cent in May from 0.8 per cent in April – the lowest since June 2016.

Clothing and energy costs also contributed to the tumble,


But the ONS said that using an alternative basket of goods, minus items that were unavailable because of the coronavirus crisis, May’s rate would have been even lower – at 0.4 per cent.

Fuel prices plunged by 16.7 per cent in May – the biggest drop on record – while energy costs sank by seven per cent and clothing and footwear price tags fell by 3.1 per cent, with retailers resorting to heavy discounts amid the lockdown.

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.’

More than 600,000 jobs lost between March and May as lockdown hits labour market

Car Dealer Magazine's avatar

Car Dealer has been covering the motor trade since 2008 as both a print and digital publication. In 2020 the title went fully digital and now provides daily motoring updates on this website for the car industry. A digital magazine is published once a month.

More stories...

Server 51