LONDON – The Office of National Statistics says surging air fares contributed to a rise in inflation in the UK last month.
The UK’s statistics service said Tuesday that consumer prices were 2.7 per cent higher in the year to May, beating the 2.6 per cent analysts expected.
The ONS says prices rose on European, long-haul and domestic flights, and were the highest on record for this time of year. Fares were up 22 per cent.
Marcus Bullus, trading director at MB Capital, says the higher-than-expected consumer price inflation underlines the volatility of Britain’s economy.
Bullus says that if Britain’s consumers think this is bad, “they’ll need to brace themselves even harder for what’s coming. Inflation looks set to rise even further during the rest of 2013.”