Qualified advisers answering your
Financial Questions
call 0800 092 1245

UK inflation slightly weaker in May

The rate of inflation in the UK fell from 3.7% in April to 3.4% in May which was better than analyst expectations of the 3.5% figure for the month. Even though the rate is still some way off the Bank of England's 2% target it is a step in the right direction and many believe we are now heading towards a downward path with regards to inflation. So is this the end of our worries?

While the reduction to 3.4% is obviously very welcome, especially in the current economic climate, we still need to be wary of the threat of inflation which has not disappeared as yet. Mistakes have been made in the past where inflation and other potential threats were written off only to return with a vengeance and cause major problems for the UK economy. The Bank of England has always suggested that the rate of inflation would fall back in the second half of 2010 and 2011 although some analysts had begun to question this forecast.

The reduction in UK inflation will release some of the pressure on the Bank of England to increase UK base rates in the short to medium term. We can now breathe a sigh of relief for the moment!

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details