Economic Buzz: UK core inflation cools to 3.5% in May

The UK?s annual core inflation rate dipped to 3.5% in May 2025 from April?s one-year peak of 3.8%, hinting at easing price pressures. The slowdown came as the CPI services rate dropped to 4.7% from 5.4%, even though the CPI goods rate ticked up to 2.0% from 1.7%. On a monthly basis, core consumer prices rose just 0.2% and marking the softest gain in four months after April?s sharp 1.4% jump. The data suggests that underlying inflation may be gradually cooling.

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