Inflation falls to 1.5%

THE headline rate of inflation fell to 1.5% in May, the Office for National Statistics said today.

The 0.3% fall on April’s figure – more than analysts expected – was the result of lower transport costs, mainly air fares.

Downward pressure also came from the food and non-alcoholic drinks and clothing.

The ONS said price rises came from motor fuels, recreation and culture.

April’s 0.3% increase was put down to higher travel fares around the Easter break.

The Retail Prices Index (RPI), which includes housing costs, grew by 2.4%, down from 2.5%.