Inflation remained stuck at 2.4 per cent last month – as rising fuel prices pushed up costs for families.
The rate of increase on the Consumer Prices Index was unchanged, meaning consumers are still facing intense pressure on their finances.
The cost of petrol went up 4.6p per litre month-on-month to an average of 125.3p amid tensions in the Middle East – the biggest hike since January 2011. Diesel prices rose 4.7p per litre to 129.2p.
The rate of increase on the Consumer Prices Index was unchanged in May, meaning consumers are still facing intense pressure on their finances
Mike Hardie, head of inflation at the ONS, said: ‘Recent large rises in the cost of crude oil have fed through to prices paid by consumers at the pump.
‘Air fares and ferry prices also contributed to the overall increase in inflation due to the timing of Easter.
‘However, these effects have been partly offset by price falls in computer games and energy costs rising by less than this time last year.’
Global oil prices have been rising due to tensions in the Middle East after US President Donald Trump said America was walking away from the Iran nuclear deal – potentially curbing supplies.
The ONS said increases in world prices were also related to declines in production in Venezuela.
However, Brent crude prices have been volatile more recently on reports that Russia and Saudi Arabia could increase oil production.
Air fares, which were influenced by the early timing of Easter this year, registered annual inflation of 8.2 per cent, having fallen by 7.9 per cent in the prior month.
Food price rises eased in May, with inflation coming in at 2 per cent, down from 2.3 per cent in the prior month.
Global oil prices have been rising due to tensions in the Middle East after US President Donald Trump said America was walking away from the Iran nuclear deal – potentially curbing supplies
Households were also hit with a rise in electricity bills, which were up 4.5% year-on-year. However, this was down from inflation of 8.6 per cent in April.
A series of energy companies have announced increases to tariffs recently, and economists expect these bill hikes will continue to feed through to families throughout the summer.
The Retail Prices Index (RPI), a separate measure on inflation, was 3.3 per cent last month, down from 3.4 per cent in April.
The Consumer Prices Index including owner-occupiers’ housing costs (CPIH) – the ONS’ preferred measure of inflation – was 2.3 per cent in May, up from 2.2 per cent in April 2018.