UK inflation has jumped past the Bank of England’s target for the first time in nearly two years, according to figures released on Wednesday by the Office for National Statistics.
Consumer price inflation rose to 2.1% in May from 1.5% in April, coming in above the BoE’s 2% target and consensus expectations for a reading of 1.8%. It also marked the highest consumer price inflation reading since July 2019.
Meanwhile, core inflation – which strips out volatile elements such as food and energy – increased to 2% in May from 1.3% the month before, coming in above consensus expectations of 1.5%.
The ONS said the largest upward contribution to the inflation rate came from transport. Rising prices for clothing, motor fuel, recreational goods, and meals and drinks consumed out also contributed.
ONS chief economist Grant Fitzner said: “The rate of inflation rose again in May and is now above 2% for the first time since the summer of 2019.
“This month’s rise was led by fuel prices which fell this time last year, but have jumped this year thanks to rising crude prices. Clothing prices also added upward pressure as the amount of discounting fell in May.”
