• Annual Consumer Price Inflation was 2.7% in the year to May 2013, up from 2.4% in April
• Annual RPI inflation was 3.1% in May 2013, up from 2.9% in April
Commenting on the inflation figures for May 2013, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:“With earnings growth stagnant, the rise in inflation will put pressure on businesses and consumers. The largest upward contribution to the inflation rise in May came from transport and clothing, partly offset by a downward contribution from food. The figures also show that inflation in services remains higher than for goods.
“We expect inflation will edge up further over the next few months, before falling in the fourth quarter of 2013 onwards and through 2014. However inflation remains a risk for the UK economy that cannot be ignored. The MPC must remain cautious, and should reject any new demands for more QE when incoming Governor Mark Carney takes over in July.”