UK consumer price inflation exceeded the central bank’s target in May, data released by the Office for National Statistics showed on Wednesday.
Consumer price inflation accelerated to 2.1 percent in May from 1.5 percent in April. This was above economists’ forecast of 1.8 percent and the Bank of England’s target of 2 percent.
Excluding volatile energy, food, alcoholic beverages and tobacco prices, core inflation rose to 2 percent in May from 1.3 percent in April. The rate was forecast to rise to 1.5 percent.
The monthly growth in consumer prices held steady at 0.6 percent, while it was forecast to ease to 0.3 percent.
Another report from the ONS showed that output price inflation came in at 4.6 percent versus 4.0 percent in April and economists’ forecast of 4.5 percent.
At the same time, input price inflation increased to 10.7 percent from 10.0 percent in April. This was the highest rate since September 2011 and above the expected rate of 10.6 percent.
Month-on-month, output prices gained 0.5 percent, slightly faster than the 0.4 percent rise seen in April. At the same time, input price growth slowed marginally to 1.1 percent from 1.2 percent.