Furniture prices fell in May as overall inflation eased to its lowest level in the UK since July 2021.

According to the latest Office for National for National Statistics (ONS) data, the Consumer Prices Index (CPI) rose by 2.0% in the 12 months to May 2024, down from 2.3% in the 12 months to April. On a monthly basis, CPI rose by 0.3% in May 2024, compared with a rise of 0.7% in May 2023.

The annual rate in May 2024 was the lowest since July 2021, when it was also 2.0%. The rate was last lower in April 2021, when it was 1.5%.

The largest downward effects came from food and non-alcoholic beverages, recreation and culture, and furniture and household goods. Transport provided the largest, partially offsetting, upward contribution.

Furniture and furnishing prices fell by 2.8% in May, down from a decline of 3.8% in April, while down from an 7.8% rise compared to the same month last year.

The retail price of household furniture decreased by 2.7% in the month, down from a fall of 2.9%, while down from 8.2% last year.

Garden furniture prices fell 22.4%, down from 23.4% on last month and down from 4.6% compared to last year.

Carpets and other floorcoverings prices fell 0.3%, down from a rise of 1.7% the previous month, while lower than the 10.3% rise last year.

Other household textile prices, including furnishings fabrics, curtains and bedding, saw prices rise by 1.3%, up from 0.5% the previous month, while down from 4.3% on last year.

Meanwhile, Producer Price Inflation (PPI) saw the rate of furniture output prices, factory gate, rise 2% in May on the same month in the previous year. The rate was lower than the rise of 3.1% in April. Furniture input prices, material cost of production, were down -0.4% in May on the same month last year, while up from a decline of -1.4% the previous month.

Producer input prices fell by 0.1% in the year to May 2024, up from a revised fall of 1.4% in the year to April. Producer output (factory gate) prices rose by 1.7% in the year to May 2024, up from an increase of 1.1% in the year to April. On a monthly basis, producer input prices showed no movement, while output (factory gate) prices fell by 0.1% in May 2024.

Commenting on the figures, Kris Hamer, Director of Insight of the British Retail Consortium, said: “The country will breathe a sigh of relief as inflation hits the Bank of England’s target of 2% for the first time in almost three years, raising hopes of an interest rate cut for the 9.6 million mortgage holders across the UK. Falling energy prices continue to be the main driver behind the fall in the headline rate however, a lower inflation rate in clothing and furniture also contributed. Food inflation fell the fourteenth month in a row, and those with a sweet tooth will be happy to see that the price of chocolate and confectionary products fell on the month.

“Hitting the 2% target is welcome news, however, it is vital that inflationary progress is not taken for granted by the next government. Retailers are working hard to limit price increases for their customers, and the next administration must play their part in reducing cost pressures on retailers and the customers they serve. Addressing key costs such as the business rates burden, which leads to customers paying a higher price at the till, must be a priority for whoever forms the next government.”