U.K. inflation for last month increased to 2.9%, reaching the highest level since June 2013 and surpassing 2.7% estimated by economists. The rise in prices of computers games, laptops and package holidays led to the 2.9% in May.
Clothing prices increased by 0.6% between April and May, compared with a decrease of 0.3% a year ago. Furniture and household good prices increase 1.2% between April and May. Electricity prices also rose by 7.7% on average in the year to May.
Month-on-month, consumer price inflation increase 0.3% in May, beating estimate of increasing 0.2% and and the 0.5% gain registered in the previous month.
“These upward contributions were partially offset by falls in motor fuel prices, and air and sea fares, the latter two influenced by the timing of Easter in April this year,” the Office for National Statistics said.
According to the Office for National Statistics, core inflation, which excludes energy and food, reached 2.6%, the highest level since November 2012.
In addition, the retail price index (RPI) rose by 3.7% last month, after increasing by 3.5% the previous month. The results beat the analysts’ estimates of no change to April’s increase. Month-on-month, RPI increased by 0.4% in May, surpassing estimates of 0.3% gain.