Inflation Static Despite Rising Fuel Costs

The annual rate of inflation was unchanged at 0.3% last month as falling fashion and food costs offset rising fuel prices. Economists had been expecting the Consumer Price Index (CPI) measure to rise in May following a surprise 0.2% decline to 0.3% in April - the first fall since September last year. The Office for National Statistics (ONS) measured a 0.9% increase in transport costs last month, as the price of diesel stepped up 3p per litre compared to 1.5p in the same month of 2015.