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


More on Markets