Reducing Petrol and Diesel Prices Eases Transport Inflation Levels

21st June 2023

The annual inflation rate for transport eased slightly from 1.6% in April 2023 to 1.3% in May. This continues the broadly downward trend in the rate seen since June 2022. Prices rose by 0.3% between April and May this year, but this was less than the 0.6% between the same two months a year ago, leading to the easing in the annual rate.

The overall slowdown masks larger, partially offsetting movements in some of the more detailed transport categories, with a large downward effect from motor fuels offset by upward effects from air fares and second-hand cars. There were also smaller downward contributions from new cars, and maintenance and repairs.

Overall, motor fuel prices fell by 13.1% in the year to May 2023, compared with a fall of 8.9% in April. Average petrol and diesel prices stood at 144.4 and 154.6 pence per litre respectively in May 2023, compared with 165.9 and 179.7 pence per litre in May 2022. Petrol prices fell by 1.4 pence per litre between April and May 2023, compared with a rise of 4.1 pence per litre between the same two months a year ago. Similarly, diesel prices fell by 7.8 pence per litre this year, compared with a rise of 3.6 pence per litre a year ago.