Inflation rises to fifty-month high

Workshop to highlight EU funding to rural businesses in Greater Lincs
Credit: Looker_Studio

Inflation has risen again with the Consumer Price Index returning to its recent high of 2.9%.

After two months at 2.6%, the CPI rate has returned to its May level – the highest in 50 months.

The Office for National Statistics says that prices in all its broad categories – such as furniture and household goods, restaurants and hotels – were higher than a year ago.

Clothing and footwear inflation was at a record 4.6% last month, which it said “may reflect changes in the exchange rate impacting on the cost of imported clothing since clothing and footwear is one of the most import-intensive categories”.

Richard Lim, Chief Executive at Retail Economics said: “Inflation resumed its ascent as the Brexit-induced fall in sterling continued to push up the cost of living for families.

“With wage growth remaining disappointingly sluggish, rising prices across food, clothing, energy and transport has intensified thepressure on personal finances.”