UK inflation rises to 8.7% in May 2023, marking a slight increase

21 Jun '23

2 min read

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Insights

UK inflation rose in May 2023, with CPI and CPIH increasing to 8.7 per cent and 7.9 per cent respectively, year-on-year, as per ONS data.
Lower motor fuel costs impacted the rates, while core inflation, excluding volatile elements, saw a significant surge to a three-decade high.
The clothing and footwear sector also experienced increased inflation.

UK's consumer prices index (CPI) recorded an annual rise of 8.7 per cent in the year to May 2023, which is consistent with the April 2023 inflation rate. Monthly CPI saw a rise of 0.7 per cent in May 2023, matching the increase observed in May 2022, as per the Office for National Statistics (ONS).

UK consumer price inflation, as measured by CPI including owner occupiers’ housing costs (CPIH), increased to 7.9 per cent in the 12 months to May 2023. This was a slight rise from 7.8 per cent in April 2023.

On a monthly basis, the CPIH climbed by 0.6 per cent in May 2023, identical to the rise seen in May 2022. A drop in motor fuel prices made the most significant contribution to the downward shift in the monthly change in CPIH and CPI annual rates.

Core inflation, which excludes volatile elements including energy rose significantly. Core CPIH increased to 6.5 per cent in the year to May 2023, up from 6.2 per cent in April, marking the highest rate for over three decades, according to data released by the ONS.

Similarly, the core CPI index surged to 7.1 per cent in the year to May 2023 from 6.8 per cent in April, reaching its highest rate since March 1992.

A closer look at sector-specific trends reveals that inflation within the clothing and footwear division increased. The CPI 12-month rate for these items rose from 6.8 per cent in April 2023 to 7.1 per cent in May 2023. Meanwhile, the CPI 1-month rate climbed from 1.1 per cent in May 2022 to 1.3 per cent in May 2023.

Fibre2Fashion News Desk (NB)

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