- The Consumer Prices Index rose by 0.3% in the year to May 2016, unchanged from April
- Rises in transport costs, restaurant and hotel bills, and telecommunications services were the main upward contributions to inflation. These rises were offset by falls in the prices of clothing, food and games
- Goods price inflation was -1.8% in the year to May 2016, while services inflation was +2.6%
Commenting on the UK inflation figures for May 2016, published today by the ONS, David Kern, BCC Chief Economist, said:
“Inflation remained unchanged in May, although most commentators expected a small increase.
“While it is likely that price growth will slowly edge up through the rest of this year, we expect that inflation will remain below the 2% target until well into 2017. Against this background, any thought of raising interest rates will be firmly off the agenda.
“However, low rates on their own are insufficient to stimulate economic growth. Much more forceful measures are needed in key areas, particularly supporting exporters and increasing infrastructure investment.”