Breaking News: Inflation continues downward path

INFLATION continued to fall last month as the CPI rate fell 0.2% to 2.8%.

The significant decline in May was reinforced by a 0.4% fall in the RPI (Retail Prices Index) rate which includes housing costs, which is now at 3.1% compared with 3.5% in April.

The Office of National Statistics said lower fuel and alcohol prices has been key factors in the fall.

TheBusinessDesk.com’s coverage of the ONS’s inflation figures are brought to our readers in association with Redmayne-Bentley.

Lauren Charnley, from Redmayne-Bentley, said: “UK inflation dropped again in May according to figures released by the Office for National Statistics today. The Consumer Price Index fell to 2.8 per cent from three per cent in April due to shrinking food and fuel prices.

“The fall was unexpected and increases the likelihood of further bouts of quantitative easing.”