Inflation hits 2.2 percent in May

LONDON (AFP) – 12-month inflation rose to 2.2 percent in May from 2.0 percent in April, lifted by soaring domestic energy bills and rising motor fuel prices, official data showed.

May’s figure breached the Bank of England’s government-set target of 2.0 percent — and was the highest reading since October 2005 when it stood at 2.3 percent.

On a month-on-month basis, the consumer price index climbed by 0.5 percent in May compared with 0.6 percent in April, according to the Office for National Statistics (ONS).

Both inflation numbers were in line with analysts’ consensus forecasts.

Upward pressure came from soaring domestic gas and electricity bills, which have soared over the past year owing to increased wholesale energy costs.

The surging cost of crude oil also fed through into rising petrol or gasoline prices, the ONS added.

AFP