UK Inflation rate rises to 0.1%

The UK inflation rate has turned positive again in May after dipping below zero in April for the first time since 1960, according to figures from the Office for National Statistics (ONS). 

The Consumer Prices Index (CPI) reported that the UK’s inflation rate rose to 0.1% in May, up from the -0.1% recorded in April.

The biggest contribution came from transport services, notably air fares, while rises in food and petrol prices also helped inflation turn positive.

Rain Newton-Smith, director of economics at the Confederation of British Industry (CBI), said: “As expected, inflation has now edged above zero and is likely to remain low in the coming months, boosting households’ spending power.

“Inflation is set to rise gradually from the autumn, as the effects of past falls in oil and food prices fade.”