U.K. Inflation Turns Positive In May

U.K. consumer prices increased in May after falling for the first time since 1960, the Office for National Statistics reported Tuesday.

Consumer prices rose 0.1 percent from last year as expected by economists, offsetting April's 0.1 percent fall.

Month-on-month, the consumer price index gained 0.2 percent as seen in April and matched expectations.

Core inflation that excludes energy, food, alcoholic beverages and tobacco rose to 0.9 percent from 0.8 percent in April.

Another report from ONS showed that factory gate prices dropped 1.6 percent, in line with forecast, and slower than a 1.7 percent decrease in April. This was the eleventh consecutive fall in prices.

As expected, output prices edged up 0.1 percent for the third straight month in May.

The decline in input prices deepened further in May. Prices plunged 12 percent annually following a 11 percent fall in the prior month. Prices were expected to drop by 11.3 percent.

On a monthly basis, input prices fell unexpectedly by 0.9 percent versus a 1.4 percent rise in April. This was the first decline in four months.

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