Inflation up to 2.7% in May

INFLATION rose last month, creeping up from 2.4% to 2.7%, according to the latest government data.

The Office for National Statistics said the largest upward contribution came from transport, notably air transport and motor fuels, and clothing.

Downward pressure came from food.

The Consumer Prices Index (CPI) inflation rate has returned to the levels seen between October 2012 and March 2013 after the slowing to 2.4% in April.

David Swift from Redmayne-Bentley said: “The UK’s FTSE 100 index shrugged off a rise in inflation this morning, as official figures from the ONS showed the Consumer Price Index jumping to 2.7% in May, up from 2.4% the month earlier.

"Although this is well above the central bank’s target of 2%, expectations are that the figure will gain momentum and break the 3% level at some point this year. It remains to be seen what action will be taken if inflation does take off, however Mr Carney’s first meeting as the Bank of England governor will be closely watched as the figures today will likely reduce the chance of further monetary easing.”

Source : James Graham – BusinessDesk.com
http://www.thebusinessdesk.com/yorkshire/news/481001-inflation-creeps-up.html?news_section=5