UK inflation stays at 8.7% despite hopes of a fall
The UK’s inflation rate has stayed at 8.7% in May – the same as April’s rate, stopping the downward trend in UK inflation figures. Inflation had been falling after hitting a peak of 11.1% last year.
The newly released Office for National Statistics (ONS) show rising prices for “air travel, recreational and cultural goods” helped keep inflation high.
Falling prices for car fuel were the largest “downward contribution” and prices for food and non-alcoholic drinks rose in May – but by less than in May 2022.
Despite PM Rishi Sunak’s pledge to halve inflation this year, “core” inflation – which strips out energy and food costs – is at the highest rate since 1992. In separate figures, the UK debt is now higher than the annual GDP for the first time since 1961.
Chancellor Jeremy Hunt’s response to the newly released figures is to stick to his plans when it comes to the economy and to continue resisting the tax cuts some Tories desperately want.
Jeremy Hunt said the UK needed to “squeeze every last drop of high inflation out of the economy”.