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Inflation jumps again to hit new four-year high

Inflation jumps again to hit new four-year high

The CPI measure of inflation reached 2.9 per cent in May, hitting its highest level since June 2013.

The Office for National Statistics attributed May's level of inflation, which marks a further increase from April's 2.7 per cent figure, to rising prices for recreational and cultural goods and services.

There were also smaller upward contributions from increased electricity and food prices. These upward moves were partially offset by falls in motor fuel prices, as well as air and sea fares.

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Core inflation, meanwhile, rose from 2.4 per cent to 2.6 per cent, its highest level since November 2012.

Some have now called an end to the upward trajectory.

"Although the headline inflation figure has risen again we do think it may have finally reached its peak," he said Nathan Sweeney, an investment manager at Architas.

"Hitting its highest level since June 2013 was a surprise but it seems much of the inflationary pressure in the system has now been washed through."

Paul Hollingsworth, of Capital Economics, added: "The effects of the lower pound already appear to be fading at the start of the production pipeline."

Last month the UK's central bank kept interest rates on hold, but warned rates could rise more quickly than markets had forecast in the event of a smooth Brexit.