In May, UK annualised inflation fell to 3.4%, slightly down from April's 3.5%, while core inflation was at 3.5%, lower than the previous 3.8%. Rising food and drink prices, now at 4.4%, counterbalanced the decrease in overall inflation. Despite some hope for easing prices, external factors like Middle Eastern conflicts and rising Brent crude prices pose inflation risks, possibly influencing the Bank of England's rate-cut decisions. Inflation in the UK continues to exceed levels in much of Europe, reflecting unique economic pressures.
Higher food and drinks costs offset most of the easing in inflation from other sources - with the annual increase in food and drink prices rising from 3.4% in April to 4.4% in May. The net result is that UK inflation remains high, and far higher than elsewhere in Europe.
The price of Brent crude has moved sharply higher despite key global oil routes remaining largely unaffected so far, and the conflict has the potential to disrupt global energy flows much more severely than it has so far.
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