UK CPI accelerated to 2.1% yoy in May, up from 1.5% yoy, above expectation of 1.8% yoy. Core CPI jumped to 2.0% yoy, up from 1.3% yoy, above expectation of 1.3% yoy. RPI also jumped to 3.3% yoy, up from 2.9% yoy, above expectation of 2.4% yoy.
ONS Chief Economist Grant Fitzner said: “The rate of inflation rose again in May and is now above 2% for the first time since the summer of 2019. This month’s rise was led by fuel prices which fell this time last year, but have jumped this year thanks to rising crude prices. Clothing prices also added upward pressure as the amount of discounting fell in May.”
Also released, PPI input came in at 1.1% mom, 10.7% yoy versus expectation of 1.1% mom, 9.0% yoy. PPI output was at 0.5% mom, 4.6% yoy, versus expectation of 0.4% mom, 4.5% yoy. PPI output core was at 0.4% mom, 2.7% yoy, versus expectation of 0.2% mom, 2.9% yoy.
