UK inflation jumps to 2.1% in May

Fastest pace of growth since July 2019

Pedro Gonçalves
clock • 4 min read

British consumer price inflation jumped to 2.1% in May from 1.5% in April, exceeding the Bank of England's 2% target for the first time in almost two years.

Figures from the Office for National Statistics (ONS) showed the annual pace of price growth - as measured by the consumer prices index (CPI) - rose 2.1% on the year in May,  the fastest pace of growth since July 2019. The ONS cited upwards pressure on inflation from transport, motor fuel and eating out costs. Economists had expected an increase of 1.8%, leading to further speculation over when the Bank of England could start tightening monetary policy.  Outgoing BOE chief economist Andy Haldane, said last week that pay and costs are already rising and high street inflation "can't ...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Business investment is expected to be 9% below pre-pandemic levels by the end of 2024

UK growth forecast severely downgraded in latest prediction for 2023

Confederation of British Industry predicts economy contraction of 0.4% next year

Laura Miller
clock 05 December 2022 • 1 min read
The bonds were bought as part of the Bank’s financial stability mandate to reduce the danger of "fire-sale" dynamics.

BoE starts sales of bonds bought during emergency gilt operation

Sales based on market demand to avoid hurting markets

Valeria Martinez
clock 29 November 2022 • 1 min read
BoE's Ramsden: Autumn Statement not enough to stop rate hikes

BoE's Ramsden: Autumn Statement not enough to stop rate hikes

Ramsden made it clear that another large hike was his preferred option

Elliot Gulliver-Needham
clock 25 November 2022 • 2 min read