The UK is now the only country among the G7 where inflation is still rising, according to figures produced by the Organisation for Economic Cooperation and Development (OECD).
Year-on-year inflation in the G7 fell to 4.6 per cent in May, down from 5.4 per cent in April, reaching its lowest level since September 2021.
The downward trend was observed across most advanced economies in May, with annualised inflation ticking lower in the US, Canada, France, Germany, Italy and Japan.
Britain, however, was found to be an outlier.
UK consumer prices across all items rose to 7.9 per cent in May when compared to the previous year, the OECD said, up slightly from 7.8 per cent in April.
It comes as many major central banks start to consider bringing their aggressive interest rate hikes to an end as prices cool, even as inflation remains elevated.
Last month, the Bank of England hiked interest rates by 50 basis points to 5 per cent, a larger increase than many expected. The BOE’s 13th consecutive rate rise takes the base rate to the highest level since 2008.
The move has exacerbated fears of a mortgage catastrophe, with some households being moved from record-low interest rates to eye-wateringly high ones in the midst of a cost of living crisis.
Related: Test and trace under scrutiny as NHS funding dries up