Inflation CPI 40-year high 9.1 pc The crisis cost Bank of England interest rates – Ian Forsyth / Bloomberg
UK inflation rose again in May, putting further pressure on the Bank of England to step up efforts to control rising prices.
According to the ONS, the consumer price index rose to 9.1 per cent last month. This was up from last month’s 9 per cent and marks a new 40-year high.
The growth was driven by higher prices for everything from fuel and electricity to food and drink.
The retail price index, which is used to determine train ticket prices and for which some index-linked bonds are pegged, rose 11.7pc
The figures will fuel demand for the Bank of England to do more to rein in inflation as the cost of living crisis deepens.
The Monetary Policy Committee cautiously raised interest rates by 0.25 percent last week, but indicated it would act more aggressively if necessary.
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inflation rises again
There’s no denying the latest figures for inflation, which hit a new 40-year high in May.
According to the ONS, the consumer price index rose to 9.1 per cent last month. This is up from 9pc from a month ago.
Prices rose 0.7 percent in the month alone, marking a slowdown from the 2.5 percent pace recorded in April when the new energy price cap came into force. Still, the figures show that prices are rising in the economy.
The retail price index, which is used to determine train ticket prices and for which some index-linked bonds are pegged, rose 11.7 percent.
All eyes will now be on the Bank of England, which is under pressure to do more to contain inflation.
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what happened overnight
Equities struggled this morning after a brief respite from last week’s painful trajectory in markets around the world, with fears of a recession continuing to build as central banks raise interest rates to tackle decades of high inflation.
While Asia, Wall Street and Europe all enjoyed healthy gains on Tuesday, analysts warned that a downbeat mood on the trading floor meant selling is unlikely to end anytime soon.
In early Asian trade, Hong Kong, Singapore, Sydney, Seoul, Taipei, Jakarta and Manila all fell, while Tokyo and Shanghai moved hard. Wellington had small gains.
Incorporated: Berkeley Group, LionTrust Asset Management (full year results), micro focus (interim)
Economics: consumer price Index (UK)producer price Index (UK)retail price index (UK)consumer confidence (The European Union)