Economics – Inflation rising
22 June 2021Annual inflation in the UK has accelerated significantly, moving from +1.6% in April to +2.1% in May, by the CPIH method. This is the highest level for over two...
Annual inflation in the UK has accelerated significantly, moving from +1.6% in April to +2.1% in May, by the CPIH method. This is the highest level for over two years.
This is just above the Bank of England’s “target” rate of +2.0% - the Bank has forecast that inflation will rise over 2021, but gives assurance that this will probably be temporary, reducing the case for corrective action.
Major contributions to inflation came from transport (especially motor fuel), clothing (a broad range of items) and recreation / culture (especially software downloads).
Price for food and drink bought at retail continued to fall in the latest month. Prices for food and drink bought at foodservice appear to have risen, but this part of the data should be treated with caution.
Price data for 2020 was based on ONS estimates rather than real field research, since most foodservice activity was closed in May 2020.