Inflation rising

Inflation climbs to 2.1% in MayThe UK inflation rate jumped to 2.1% in the year to May, with this ahead of the Bank of England’s (BoE) target of 2% and the highest level for almost two years. Data from the Office for National Statistics (ONS) shows that the Consumer Prices Index (CPI) rose from 1.5% in April, with rising clothing and fuel prices driving the rate higher. The 2.1% rate recorded in May exceeds analysts’ expectations, with economists having forecast a rate of about 1.8%. Core inflation, which excludes the price of food and energy, rose to 2% in the 12 months to May. The BoE has said it expects inflation to hit 2.5% by the end of 2021 as the economy reopens following lockdown restrictions, forecasting that any climb above 2% will be temporary.