UK inflation hits a fresh 40-year high in May as petrol, food prices rise again.
UK CPI inflation edged higher in May, rising to 9.1% -- the highest level since 1982, according to the Office for National Statistics. The increase will not be a surprise to financial markets, as it is in line with analysts expectations -- although the monthly 0.7% increase was just above forecasts.
"Although at historically high levels, the annual inflation rate was little changed in May," ONS Chief Economist Grant Fitzner said, pointing to continued steep food price rises and the record high cost of petrol.
Core CPI, highlighted recently by the Bank of England as a particular concerned as it was outpacing most peer economies, slowed modestly to 5.9% from 6.2% in April. Factory gate inflation, the measures of input and output costs for UK industry, again rose to record highs, with May Input PPI rising 2.1% to 22.1% y/y.
The number will not be a surprise to the BOE who saw inflation ticking higher, but there is little respite for policymakers, who still see inflation rising to just above 11% early in Q4.