(Office for National Statistics) UK Inflation exceeded expectations and Bank of England target of 2% to jump 2.1% in 12 months to May. The surge reflected the opening of the economy which pushed the costs of goods up.
May’s 2.1% rise in inflation was higher than April’s 1.6% surge.
The inflation increase in May was the highest since July 2019.
Core inflation, which excludes volatile food and energy, rose 2% year over year, the highest since August 2018.
Inflation is now expected to peak at around 2.8% by the end of the year, as current price data was collected before the UK loosened restrictions.
The pound reacts to news. GBPUSD is up +0.26%, FTSE 100 is up +0.100%
