UK inflation eased slightly to 3.4% in May, down from 3.5% in April, as a steep fall in air fares and petrol prices was offset by a jump in the cost of food, according to official figures.
The Office for National Statistics said annual food inflation rose to 4.4% in May from 3.4% in April, driven by increases in the cost of sugar, jam and chocolate. Chocolate prices surged 17.7%, the fastest pace since records began in 2016, due to poor harvests in Ghana and Ivory Coast.
Core inflation, which excludes volatile items such as energy, food and alcohol, fell to 3.5% in May from 3.8% in April. Services inflation also slowed more rapidly, dropping from 5.4% to 4.7%.
Transport costs declined, with air fares tumbling from a 16.2% increase in April to a 3.9% decrease in May, partly because Easter fell in April this year rather than March. Petrol and diesel prices also fell.
Economists expect the Bank of England to hold interest rates at 4.25% this week amid persistent wage growth and inflationary pressures from higher government spending. The chancellor, Rachel Reeves, said there was “more to do” to bring down inflation and support households.
