UK inflation accelerates in May to highest level in 4 years
Inflation rose to 2.9% in May from 2.7% in April. Economists had forecast the annual rate to remain unchanged at 2.7%. This was the highest inflation since 2013.
Core inflation that excludes energy, food, alcoholic beverages and tobacco increased to 2.6% from 2.4% in April.
On a monthly basis, consumer prices gained 0.3%, slightly faster than the 0.2% increase economists had forecast.
The consumer prices index including owner occupiers' housing costs advanced 2.7% annually in May versus 2.6% in April.
Another report from the ONS showed that output price inflation held steady at 3.6% in May. The rate came in line with expectations.
At the same time, input price inflation eased to 11.6% from 15.6%, while economists forecast it to slow moderately to 13.5%.
Month-on-month, output prices edged up 0.1% compared to a 0.4% increase in April. Meanwhile, input prices fell 1.3%, following a 0.3% drop. ■