Brits Breathe a Sigh of Relief as Inflation Remains at 4.5%
The cost of living has stopped rising as latest figures reveal inflation remains steady at 4.5 % in May.
The Consumer Prices Index (CPI) annual rate of inflation stood at 4.5 % in May, the same as in April after the previous month experienced a jump from 4% in March, the BBC reported.
The Office for National Statistics reveals fuel and food prices are the main contributors to the high rate of inflation, both up 1.3% from April despite the CPI remaining flat.
When mortgage interest payments are included to calculate the Retail Prices Index (RPI), this also remained at 5.2% in May.
A more detailed analysis however reveals the largest downward pressure to the CPI inflation was from transport serves – air transport, sea transport and international rail travel, and it is thought the late Easter was what caused these pressures to raise April’s inflation.
While furniture, household equipment and maintenance were other areas which contributed to the downward pressure between April and May.
Food rose however by 1.3 % between April and May this year, in comparison to a year ago where this fell 0.1%. Fruit prices rose by 4.7% and the main contributor in this group was the price of grapes. Meat prices also rose from April.
Miscellaneous good and services overall rose by 0.6% between April and May this year, compared with an increase of 0.2% between the same two months a year ago. The main contributors came principally from appliances and products for personal care.
According to the second annual Scottish Widows Priorities of Life Index, 32% of Brits say they are not paid enough - but perhaps the most worrying figure is the 25% who admit they try not to think about money on a day-to-day basis.
While R3 revealed eight million Brits are due to go overdrawn this month due to the high cost of living.