Inflation nudges upwards to 9.1%

The Bank of England still believes the peak is yet to come.

UK inflation reached 9.1% in the 12 months until May, the Office for National Statistics (ONS) announced today. Previously, inflation reached 9% in the 12 months to April.

May’s inflation rate means it is the highest figure to be recorded in the National Statistics series, which began in 1997, and the highest inflation has been in 40 years.

“While the rate of growth in the inflation rate may have slowed, we have plenty warnings that this is not the peak, with the Bank of England expecting it to climb to 11% later this year following the increase in fuel caps,” said Paul Craig, Portfolio Manager at Quilter Investors.

May’s rise was also attributed to a rise in energy prices, amid Russia’s war in Ukraine.

Meanwhile, an increase in food and non-alcoholic beverage prices also played a role in the rise too. In particular, the rise in price for bread, cereals and meat contributed towards the increase in inflation.

While the price of fruit did rise, it made a downward contribution towards inflation.

In total, prices for food and non-alcoholic beverages rose 8.7% in the year until May 2022.

This is a developing story, find out how the latest inflation increase will affect your savings.