Inflation set to slow down following April's bill hikes
The Consumer Prices Index (CPI) Inflation rate in the UK is expected to drop to 3.3% in May, down from 3.5% in April, according to a consensus of analysts.
April's CPI rate should have been 3.4% instead of 3.5% due to an error in vehicle tax data, according to the Office for National Statistics (ONS), but the official figure was not revised.
Economists predict that price rises stabilised in May after household bills increased in April due to a rise in the energy price cap and other charges.
Sanjay Raja from Deutsche Bank anticipates a decrease in transport service Inflation in May, particularly in airfares and package holiday prices, following Easter holiday increases in April.
Rising oil prices, triggered by recent events such as Israel's attack on Iran's nuclear programme, could potentially increase Inflation in the UK by impacting energy costs.
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