06 Jul 2023
The UK's rate of inflation plateaued at 8.7% in May, data published by the Office for National Statistics (ONS) has shown.
Inflation was expected to fall in May but remained at 8.7% - the same rate as was recorded in April. The rate of 8.7% is higher than economists had expected, and many now anticipate a rise in interest rates.
Experts have stated that so-called 'core inflation' - which excludes volatile elements such as food, fuel and energy prices – is now at its highest level in the UK for over 30 years. Many warn that the high inflation rate will have knock-on effects for mortgages.
UK inflation is higher than inflation rates in comparable countries, the data revealed: Germany recorded a rate of inflation of 6.3%; France's rate is currently 6%; and the USA's inflation rate is 2.7%.
Chancellor Jeremy Hunt said:
'We need to squeeze every last drop of high inflation out of the economy.
'Inflation is the biggest, the most invidious, tax rise the British people are facing right at the moment because it is eroding the value of their salaries – so that is our primary priority.'
Internet link: Office for National Statistics website