Reopening of the U.K. economy in May led to a 2.1% increase in inflation as the cost of fuel, clothes, and meals shot up.
- Economists had predicted a 2% increase; the 2.1% May increase was the highest since that of July 2019.
- Prices of food and energy shot to 2%, the highest since August 2018.
- Release of the statistics led to an increase in the pound trading at 0.23% more against the dollar at $1.411, Britain’s FTSE 100 stock went up 0.27%.
Economists expressed concern that U.K.’s CPI may increase beyond the 2% aimed by England, but are optimistic that the situation could change in 2022.
FTSE 100 is up 0.05%, GPBUSD is up 0.23%
Source: Office for National Statistics
