Rising fuel and food prices pushed inflation in Britain above 3% in May, to its highest level since the current inflation measure was introduced more than a decade ago, the Office for National Statistics (ONS) said Tuesday.
Figures showed that the Consumer Price Index (CPI), by which inflation is measured in Britain, rose by 0.3 percentage points to 3.3% in May, from 3% in the previous month. However, if measured by the Retail Price Index (RPI), which includes mortgage interest rate payments, inflation in Britain stood at 4.3% in May. The ONS said this was the highest reading since the measure was first used in January 1997. Previous comparable annual inflation readings were last as high in July 1992.
The figures show that the cost of living in Britain has now risen by more than 1% above the government’s 2% upper target, triggering a public explanation from the Bank of England, and making a cut in interest rates in the near future unlikely. (The Economic Times)