UK inflation slips to 2.2% in May

[B. Karthick]

Consumer inflation for the month of May in the recession-hit Britain
fell to 2.2 per cent dragged down by food and non-alcoholic beverages.

In April, the CPI -- a measure of price movements -- stood at 2.3 per
cent.

"Consumer Prices Index (CPI) annual inflation-– the government's
target measure – fell to 2.2 per cent in May, down from 2.3 per cent
in April," the Office for National Statistics said in a statement
today.

Food and non-alcoholic beverages presented the largest downward
pressure for the CPI annual rate.

"This was principally due to meat with prices rising by less than a
year ago. There were smaller downward effects from vegetables, bread
and cereals, and milk, cheese and eggs," the statement noted.

On the other hand, the maximum upward pressure affecting the CPI in
May came from alcoholic beverages and tobacco, mainly reflecting the
increase in excise duty from this year's budget.

Meanwhile, the Retail Price Index inflation which includes mortgage
interest payments, was in the negative territory at 1.1 per cent in
May. In April, the same stood at -1.2 per cent.

"...There was a large upward pressure from housing where the largest
effect came from mortgage interest payments," the statement said.