According to the latest data available from the Office of National Statistics, a 0.3% monthly increase in the UK Consumer Price Index has lifted the annual inflation rate to 2.9% in May 2017, a slight increase from the 2.7% estimated by the Bank of England.
This marks the highest reading since April 2012, continuing a trend of increased prices after a period of low inflation in 2015. It also marks the 5th consecutive month where inflation has exceeded the Bank of England’s target rate of 2%.
The increase in the CPI is mainly attributed to a rise in the prices of recreational and cultural goods, most notably video games. Overall prices in this category rose 0.9% between April and May, the largest increase in all categories measured. This was coupled with modes price increases for food, clothing, electricity, furniture and household goods.
These increases were partially offset by a decrease in transportation prices, especially in air and sea fares.