• Annual CPI inflation in May 2015 was 0.1% compared with -0.1% in April
  • The largest upward contributions to the rise came from airfares, food and motor fuels
  • The largest downward pressure came from recreation and culture
  • Goods inflation in May 2015 was -1.8%, while services inflation was 2.3%

Commenting on the CPI inflation figures for May, published today by the ONS, David Kern, Chief Economist of the British Chambers of Commerce, said:

“As widely expected, the period of mild deflation was a short-lived phenomenon in the UK and inflation is back into positive territory after just one month. Our forecast is that annual inflation will remain around zero over the next 3 or 4 months, before edging up gradually towards the end of the year. Even so, we predict that inflation will still be slightly below the 2% target by the end of next year. This inflation profile suggests that the MPC will not need to consider interest rate rises until the middle of 2016 at the earliest.

“With earnings rising well ahead of inflation, this is good news for households and businesses alike, helping to support living standards and reinforcing our view that that the UK economy is on the up.”