Inflation slowed down last month as pressure on travellers eased, it was revealed today.
New figures showed the CIP measure of inflation dipped to 2 per cent from 2.1 per cent in April.
The rate is in line with the Bank of England’s target, and further lifts the pressure for any rate rises.
In April, Easter holiday getaways boosted prices for transport services by 10.4 per cent. This slowed to 3.9 per cent in May.
Air fares in particular saw a significant unwinding, with April’s 31.4 per cent price rise dropping to 13.3 per cent in the following month.
New figures from the ONS showed the CIP measure of inflation dipped to 2 per cent last month from 2.1 per cent in April
Rail, road and sea transport also all showed smaller rates of growth last month.
But travellers faced climbing prices at hotels and hostels, with accommodation services rising 3.9 per cent on the year in May, compared to a 1.4 per cent increase in the prior month.
At the pumps, petrol prices were up 4.2p per litre to 128.3p. Diesel climbed 2.8p to 135.8p.
Upward pressure came from recreation and culture, especially the games, toys and hobbies category which includes video games.
Prices for this sector were up 0.3 per cent on the year in May, compared to the previous month’s 3.3 per cent dip.
Wine and beer also had a positive contribution, with beer recovering from April’s 0.1 per cent price dip to rise 1.1 per cent while wine continued to become more expensive with a 2 per cent rise on the year.
However spirits declined 2.5 per cent, accelerating from a 0.2 per cent decrease in April.
Mike Hardie, head of inflation at the ONS, said: ‘Inflation eased in May, as travel prices such as air fares fell back after their Easter highs in April.
‘The overall rate of inflation has remained steady since the beginning of the year.’
The CPI, including owner-occupiers’ housing costs (CPIH) – the ONS’s preferred measure of inflation – was 1.9 per cent in May, down from 2 per cent in April.
The Retail Prices Index (RPI), a separate measure of inflation, was 3 per cent, unchanged from April.
Wine prices continued to become more expensive with a 2 per cent rise on the year (file pic)