Investing.com - Consumer price inflation in the U.K. rose more-than-expected in May, hitting a two-month high, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the rate of consumer price accelerated at a seasonally adjusted 2.7% in May, above expectations for a 2.6% increase and up from 2.4% in April.
Month-over-month, consumer price inflation rose 0.2% last month, compared to expectations for a 0.1% increase, after rising 0.2% in April.
The rate of inflation remains above the Bank of England’s 2.0% target, but the Bank of England will not be obliged to write to the Chancellor of the Exchequer, as the inflation rate is less than a percentage point above or below its target.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose to a seasonally adjusted 2.2% in May from 2% in April. Analysts’ had expected core prices to ease up 2.1%.
The retail price index rose 3.1% last month, in line with expectations, after rising 2.9% April.
Following the release of that data, the pound added to losses against the U.S. dollar, with GBP/USD shedding 0.24% to trade at 1.5683.
Meanwhile, European stock markets remained mixed. London’s FTSE 100 added 0.4%, the EURO STOXX 50 declined 0.1%, France’s CAC 40 fell 0.2%, while Germany's DAX dipped 0.2%.
In a report, the U.K. Office for National Statistics said the rate of consumer price accelerated at a seasonally adjusted 2.7% in May, above expectations for a 2.6% increase and up from 2.4% in April.
Month-over-month, consumer price inflation rose 0.2% last month, compared to expectations for a 0.1% increase, after rising 0.2% in April.
The rate of inflation remains above the Bank of England’s 2.0% target, but the Bank of England will not be obliged to write to the Chancellor of the Exchequer, as the inflation rate is less than a percentage point above or below its target.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose to a seasonally adjusted 2.2% in May from 2% in April. Analysts’ had expected core prices to ease up 2.1%.
The retail price index rose 3.1% last month, in line with expectations, after rising 2.9% April.
Following the release of that data, the pound added to losses against the U.S. dollar, with GBP/USD shedding 0.24% to trade at 1.5683.
Meanwhile, European stock markets remained mixed. London’s FTSE 100 added 0.4%, the EURO STOXX 50 declined 0.1%, France’s CAC 40 fell 0.2%, while Germany's DAX dipped 0.2%.