UK inflation falls to 2% as food price pressures ease

Figures released on 19 June 2024 showed UK Consumer Prices Index inflation at 2.0% in the year to May, down from 2.3% in April. CPIH, which includes owner occupiers’ housing costs, was 2.8%. Food made the largest downward contribution to the change in the annual inflation rates; motor fuels pushed in the opposite direction.

Slower inflation leaves higher prices

The return to 2% reduced the pace of annual price increases without reversing the earlier rise in the cost of living. Household purchasing power therefore still depended on how incomes compared with the accumulated increase in prices. The difference between CPI and CPIH also highlighted the influence of housing costs on the inflation picture.