The Office of National statistics (ONS) has released higher inflationary data for the month of May, rising to 2.7% from the previous slighly lower than expected 2.4% for April. The overall trend being gently upwards at the moment, heading back to 3%, with energy prices playing a large part in the downward trend reversing.
The culprit on this occasion was higher air fares up by 22% in one month with clothing prices rising by 1.2%.
Overall the inflation rate is not expected to ease until Q4 and will probably be close to 2.5% at year end, providing the price of oil stays stable at high but comparatively sustainable levels.