UK inflation hits four-year low

The UK’s inflation rate dropped to 0.5% in May, down from 0.8% in April, according to new figures from the Office for National Statistics (ONS).

According to the ONS, falling prices for motor fuels and a variety of recreational and cultural goods resulted in the largest downward contributions to inflation rates between April and May 2020.

There was also a downward contribution of 0.08 percentage points from recreation and culture, where prices overall fell by 0.1% between April and May 2020, compared with a rise of 0.5% between the same two months a year ago

For restaurants and hotels, there was a smaller downward contribution, where prices overall were estimated to have increased by 0.4% between April and May this year, compared with a larger increase of 0.8% between the same two months a year ago.

Part of this contribution (0.01 percentage points) came from those items available to consumers this month for fast food and takeaway service. Despite this, rising prices for food and non-alcoholic drinks resulted in a partially offsetting upward contribution to change.