Source: Office for National Statistics
British inflation in May surged to a level not seen in nearly two years, driven by higher prices of clothing and petrol products.
- Inflation accelerated to 2.1% in May from 1.5% in April and 2.0% the same month in 2020.
- The latest inflation print is the same as July 2019 and December 2018, and is only lower than November 2018’s 2.3%.
- Drivers for the uptrend are price movements for clothing, motor fuel, and recreational and cultural goods.
- Meals and drinks consumed out contributed to the change in the year-on-year inflation.
- The Consumer Prices Index including owner occupiers’ housing costs (CPIH) climbed 2.1% year-on-year from 1.6% in April.
- Transport was the biggest contributor to the CPIH movement with 0.72 percentage points.
- Price decreases were recorded in food and non-alcoholic beverages, particularly in bread and cereals.