UK CPI rises further in May, its highest since April 2012

The UK consumer prices extended its upbeat momentum in May, arriving at 2.9% y/y, versus 2.7% booked in April, the Office for National Statistics (ONS) revealed on Tuesday.

While the core inflation gauge also accelerated in May, coming in at +2.6 y/y. Markets had predicted the core figures to remain unchanged at +2.4%.

On monthly basis, the UK inflation figures bettered expectations, coming in at 0.3% last month, as compared to 0.5% previous and expectations of +0.2%. 

ONS reports, “Rising prices for recreational and cultural goods and services (particularly games, toys and hobbies) was the main contributor to the increase in the rate. There were smaller upward contributions from increased electricity and food prices.”