UK inflation rate drops to 2.8% in May, says ONS

The UK rate of inflation fell last month to a two-and-a-half year low owing to slowing fuel and food prices.

The Consumer Prices Index (CPI) measure fell to 2.8% in May from 3% in April, the Office for National Statistics (ONS) said.

The Retail Prices Index (RPI) measure fell to 3.1% from 3.5% in March.

Inflation has fallen from 5.2% last September due to the waning impact of the VAT rise in 2011 and falling energy, food and commodity prices.

The Bank of England has predicted that CPI inflation will remain above the 2% target rate "for the next year or so".

Source & Image : BBC