UK annual inflation held at 14-month low

LONDON

Britain’s annual inflation rate held in May at 2.4 percent, the lowest level since March 2017 despite high oil prices, official data showed on June 13.

The Consumer Prices Index 12-month rate had stood at the same level in April, the Office for National Statistics (ONS) added in a statement.

The news was in line with market expectations but weighed on the pound against the dollar.

The rate was unchanged despite the higher cost of motor fuel, which rose with the stronger global oil market. Petrol, or gasoline, is refined from crude.

World oil prices have rallied in recent months owing partly to simmering geopolitical tensions in the oil-rich Middle East region.

“Recent large rises in the cost of crude oil have fed through to prices paid by consumers at the pump,” said ONS inflation chief Mike Hardie, noting that air fares and ferry tickets also increased.

This was offset partly by price falls for computer games, the ONS said.