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- UK consumer price index rose more than expected in May
UK consumer price index rose more than expected in May
The Office for National Statistics said that the Consumer Prices Index (CPI) rose by 2.1% in the 12 months to May 2021, up from 1.5% to April. Economists had expected a 1.8% increase. On a monthly basis, CPI rose by 0.6% in May 2021, compared with little change in May 2020. Economists had expected a 0.3% increase.
The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 2.1% in the 12 months to May 2021, up from 1.6% to April.
The largest upward contribution to the CPIH 12-month inflation rate came from transport (0.72 percentage points).
On a monthly basis, CPIH rose by 0.5% in May 2021, compared with little change in May 2020.
Rising prices for clothing, motor fuel, recreational goods (particularly games and recording media), and meals and drinks consumed out resulted in the largest upward contributions to the change in the CPIH 12-month inflation rate between April and May 2021.
These were partially offset by a large downward contribution from food and non-alcoholic beverages, where prices fell this year but rose a year ago, particularly for bread and cereals.
As a result of the easing of coronavirus (COVID-19) restrictions, the number of CPIH items identified as unavailable in May 2021 fell to 27, accounting for 3.1% of the basket by weight; we collected a weighted total of 77.7% of the comparable coverage collected before the first lockdown (excluding unavailable items).
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