Inflation hits highest level in five years

Inflation in May hit its highest rate since April 2012, new figures have revealed.

The Consumer Prices Index (CPI) increased from 2.7 per cent in April 2017 to 2.9 per cent in May, according to the latest figures from the Office for National Statistics (ONS).

Including owner-occupiers’ housing costs, the Consumer Prices Index saw a 12-month inflation rate of 2.7 per cent in May, up from 2.6 per cent in April.

The rate has been steadily increasing following a period of relatively low inflation in 2015 and is now at its highest in five years.

Rising prices for recreation and cultural goods and services, such as games, toys and hobbies, was the main contributor to the increase in the rate.

This was partially offset by falls in motor fuel prices and air and sea fares.