Inflation fails to fall

A further fall in inflation again failed to materialise in the year to May. The RPI rate, which includes mortgage interest payments, rose by 11.3%. The CPI measure was unchanged at 8.7% (with a housing element, CPIH, 7.9%).

So-called “core” inflation is at its highest for 30 years. And although inflation on food and non-alcoholic beverages eased slightly it was still ferocious at 18.4% (CPIH) including 27.4% on milk, cheese and eggs.