Annual drop in May, down from reading of 3.5% in April, offset by rises in cost of food and furniture
Inflation in the UK eased to 3.4% last month after rises in the cost of food and furniture were offset by a steep fall in air fares and petrol prices.
May’s decline in the consumer prices index (CPI), down from the official figure of 3.5% for April, complicates the Bank of England’s interest rates decision on Thursday, although policymakers are still almost certain to hold interest rates at 4.25%.
