Inflation eases to 3.4% in May amid falling air prices

Inflation eased to 3.4% in May 2025, down from 3.5% in the 12 months to April, as rising food prices were offset by falling air fares, according to the latest figures from the Office for national statistics. However, the fall comes with a caveat: the ONS has since revealed that April's inflation rate was incorrectly reported and should also have been 3.4%. The error stemmed from inaccurate vehicle tax data supplied by the Department for Transport. While the ONS has acknowledged the mistake, it has not formally revised the April figure. Instead, it noted that under its revisions policy, the incorrect data will remain on record, though the correct figures were used in compiling the May index. The biggest driver in the fall of the stated rate was from prices in the transport division falling from 3.3% in April to 0.7% in May. The slowing in the annual rate reflected falls in air fares and the price of motor fuels. Air fares fell by 5.0% between April and May 2025, compared with a large rise of 14.9% between the same months in 2024. These movements were influenced by the timing of Easter and the associated school holidays. In 2025, Easter fell in the middle of April, possibly contributing towards relatively high fares, which then fell in May. The downward contributions from other divisions were partially offset by an upward effect from food and non-alcoholic beverages, where prices rose by 4.4% in the 12 months to May 2025, up from 3.4% in the 12 months to April. The May 2025 figure was the highest recorded since February 2024, when the rate was 5%. ONS acting chief economist Richard Heys said: “A variety of counteracting price movements meant inflation was little changed in May. Air fares fell this month, compared with a large rise at the same time last year, as the timing of Easter and school holidays affected pricing. Meanwhile, motor fuel costs also saw a drop. “These were partially offset by rising food prices, particularly items such as chocolates and meat products. The cost of furniture and household goods, including fridge freezers and vacuum cleaners, also increased.”

Inflation eases to 3.4% in May amid falling air prices

Air fares fell by 5.0% between April and May 2025, compared with a large rise of 14.9% between the same months in 2024. These movements were influenced by the timing of Easter and the associated school holidays

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