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| UK inflation rate rises to 2.7% in May | UK inflation rate rises to 2.7% in May |
| (35 minutes later) | |
| The rate of consumer price index (CPI) inflation increased to 2.7% in May, up from 2.4% in April, the Office for National Statistics (ONS) said. | |
| The ONS said the rise was due to a record increase in airfares and higher fuel prices. | The ONS said the rise was due to a record increase in airfares and higher fuel prices. |
| Airfares rose by 22% between April and May, the highest increase since comparable records began in 2001. | Airfares rose by 22% between April and May, the highest increase since comparable records began in 2001. |
| The Bank of England has said it expects inflation to exceed 3% this year. | The Bank of England has said it expects inflation to exceed 3% this year. |
| May's rise in inflation was higher than analysts predicted. | May's rise in inflation was higher than analysts predicted. |
| The price of clothing and footwear rose by 1.2% month-on-month, after a colder than normal May saw the cost of women's outdoor clothing increase. | The price of clothing and footwear rose by 1.2% month-on-month, after a colder than normal May saw the cost of women's outdoor clothing increase. |
| However, food and drink prices fell, with a reduction in the cost of meat, vegetables, fruit, sugar and jams. | However, food and drink prices fell, with a reduction in the cost of meat, vegetables, fruit, sugar and jams. |
| The Bank of England expects inflation to remain above its 2% target until early 2016. | The Bank of England expects inflation to remain above its 2% target until early 2016. |
| Markit's chief economist Chris Williamson said that the rise in inflation acted as "a reminder that the ongoing erosion of spending power from rising prices will continue to act as a brake on economic recovery". | |
| The sharp rise in airfares appeared to have taken analysts by surprise. | |
| Ross Walker, UK economist at RBS, said: "The good news is that [inflation] is coming in noticeably below the Bank of England's May forecast, where they had a 2.9% average for the second quarter. | |
| "So looking over a two or three-month horizon, which I think you have to do, the inflation picture is a little better, but still above target and still a little bit sticky." |