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19 June 2019

Inflation slips due to air fare dive

UK Consumer Price Inflation (CPI) hit the Bank of England’s 2% target in May, falling from 2.1%.

Saul Fulda, Investment Analyst at investment management and stockbroking firm Redmayne Bentley, said: “Any pressure felt by policymakers to increase interest rates has surely ended for now. Reductions to air fares and house prices were the key triggers to the decrease in CPI.  

"Following the spike in Easter air fares, transport prices fell by 3.8% between April and May, while the general slowdown in UK house price growth continues; average UK house prices increased by 1.4% in the year to April 2019, down from 1.6% in March 2019. Today’s figures mark the 10th consecutive month in a row that prices in London have fallen on an annual basis. Given the data, it seems highly unlikely that the Bank of England will adjust interest rates when it meets tomorrow.”

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Inflation slips due to air fare dive
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