UK inflation rate rises to 0.1%
Written by Taiwo Adediran on June 16, 2015
The UK’s inflation rate, as measured by Consumer Prices Index (CPI), rose to 0.1% in May, up from -0.1% in April, in official figures.
The biggest contribution to the rise came from transport, notably air fares, the Office for National Statistics said.
Rises in food and petrol prices also helped inflation to turn positive, it said. In April, CPI inflation turned negative for the first time since 1960.
ONS statistician Philip Gooding said: “Last month CPI turned negative, mainly because of falling transport fares due to the timing of Easter. This month, that fall has been reversed.”
He added that the falls in food and fuel costs over the last year “have eased this month, helping to push inflation up”.
Bank of England governor Mark Carney has said he expects inflation to remain low in the short term. The Bank expects near-zero inflation to help the UK economy by boosting the spending power of households.