Inflation rises to four-year high
Inflation has risen to a four-year high with higher costs for food, toys, games and hobbies squeezing the cost of living.
Latest figures from the Office for National Statistics show inflation rising to 2.9% in May from April’s 2.7% – well above the Government’s target of 2%. It is the highest level since June 2013.
The largest upward contribution came from housing and household services, largely from rises in owner occupiers’ housing costs and, to a lesser extent, from Council Tax and electricity price rises.
Electricity prices rose by 7.7% in the year to May following a series of increases from different companies in recent months.
Transport prices rose by 4.5% in the year to May.
Food prices rose slightly between April and May this year compared with a fall a year ago. The latest rise continues the upward movement seen from late 2016 and comes from a variety of product groups, particularly sugar, jam, syrups, chocolate and confectionery where prices of cartons and boxes of chocolates rose between April and May this year.
Prices for clothing rose by 0.6% between April and May this year compared with a fall of 0.3% a year ago. The upward effect came principally from children’s clothing. Sales patterns may have contributed to the price movements, as the proportion of items on sale fell between April and May this year, having risen a year ago.
By far the largest downward contribution this month came from transport prices as motor fuels and transport services, particularly air and sea fares, fell. Petrol and diesel prices each fell this year, by 1.0 and 1.6 pence per litre respectively. This is the third successive month of price falls. A year ago, their prices rose by 2.8 and 3.0 pence per litre respectively.
