British inflation decelerated more than anticipated last month, driven by a temporary drop in fuel costs following a brief de-escalation in the Iran conflict.
The cooling price pressures provide a momentary boost to Prime Minister Andy Burnham’s economic agenda, though the relief is expected to be short-lived as geopolitical risks remain elevated.
8% in May. However, the underlying drivers of price stability remain fragile.
The slowdown in consumer prices underscores the sensitivity of UK inflation to external energy shocks.
With fuel costs receding from their recent peaks, the immediate pressure on household budgets has eased, allowing the Office for National Statistics to report a figure that beat market consensus.
This development aligns with a broader trend of moderating inflation seen in previous months, where Britain’s annual rate had already fallen to 2.6% in June, down from 2.8% in May.
However, the underlying drivers of price stability remain fragile.