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 Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Markets

Market Movers Blog: US stocks surge to record high as bonds slide after Trump win

Market Movers Blog: US stocks surge to record high as bonds slide after Trump win

Latest news and analysis

Investment Week
clock 05 November 2024 • 1 min read
Autumn Budget 24: UK stocks rally while gilt yields soar as 'questions remain' around fiscal headroom

Autumn Budget 24: UK stocks rally while gilt yields soar as 'questions remain' around fiscal headroom

Gilts reach year-to-date high

Linus Uhlig
clock 30 October 2024 • 2 min read
Autumn Budget 24: Income tax threshold freeze to be lifted in 2028/29

Autumn Budget 24: Income tax threshold freeze to be lifted in 2028/29

No extension of freeze in thresholds beyond 2028

clock 30 October 2024 • 3 min read
Trustpilot