Inflation held at 0.3% in May; Analysts predict post-referendum bounce

Will gather momentum next year

Economists have predicted inflation will begin to rise, regardless of the outcome of the EU referendum, despite CPI falling short of consensus expectations in May.

The Office for National Statistics revealed inflation held steady in May at 0.3%, meaning it has remained just a little above zero since the start of the year. With the exception of March, when the rate was influenced by the timing of Easter according to the ONS, headline inflation has been 0.3% every month in 2016. Rises in transport costs, restaurant and hotel bills and the price of telecommunication services were the main upward contributors to change in the rate but these were offset by falls in the price of clothing, food and games, toys and hobbies. Kames' Roberts: The world ...