Consumer prices rose 1.5 per cent in May, the least since
The figures buy time for governor
"Given the spare capacity in the economy and the prolonged squeeze on consumers' purchasing power, the pricing power of retailers, manufacturers and services companies will likely remain limited for some time to come,"
The pound fell against the dollar after the data and was trading at
Consumer prices fell 0.1 per cent from April. Pressure came from supermarket price wars that drove down the cost of food and non-alcoholic beverages.
These goods dropped 0.6 per cent on the year, the first annual decline since 2006 and the largest since
Clothing prices also fell, as did air and sea transport costs after travel operators raised fares in the run-up to Easter in April.
Air fares declined 3.2 per cent on the month and sea transport plunged 9.9 per cent.
Tuesday's report also showed that retail-price inflation, a measure used as a basis for the inflation-linked bond market, slowed to 2.4 per cent, the lowest since
In a separate report on Tuesday, the ONS said factory input costs fell 0.9 per cent in May from April. They dropped 5 per cent compared to the same month in 2013.
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