UK Inflation Rises to 2.9%

Posted by siteadmin on Friday 30th of June 2017.

In its latest data release, the ONS disclosed that the UK’s Consumer Prices Index (CPI) rose in May to 2.9% for the year, an increase from the previous level of 2.7%.

The wider Consumer Prices Index including owner occupiers’ housing costs (CPIH) which is not a national statistic, rose to 2.7% for the 12-month period to May 2017, its highest level seen since April 2012. This also represents a marginal increase from the previous figure of 2.6% in April 2017 and reinforces the continuing upward march of inflation.

Some of the major contributing factors to this increase were the rise in prices for cultural and recreational services and goods, such as toys, games, and hobby goods.

Other areas that saw smaller price increases were electricity and food prices, particularly sugar, jams and syrups, chocolate and confectionery. Clothing prices also saw rises.

On the other side of the equation, the country saw a fall in the price of motor fuels, with diesel falling 1p per litre and petrol 1.6p, together with a decline in the cost of other transport services. This was particularly noticed in a fall in both air fares, down 6.4%, and sea fares down 10.8%. Observers believe that the timing of the Easter break had a significant effect in this respect, compared with last year.

Motor fuels have now enjoyed a third successive month of price falls, reflecting the fall in the price of crude oil globally.

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.