UK inflation remains highest for more than a year

UK inflation remained at 3.4% in the year to May as cheaper air fares offset higher food prices as the cost of chocolate and meat rose.

The pace of price rises was the same as in April, following a revision by the Office for National Statistics (ONS), and means that inflation remains at its highest for more than a year.

It said that the cost of plane tickets fell compared with a large rise last year “as the timing of Easter and school holidays affected pricing”.

Inflation remains above the Bank of England’s target rate of 2% but it is not expected to cut interest rates when it meets on Thursday.

Food prices have risen for three months in a row and, at 4.4% in May, are the highest since February last year.

Ruth Gregory, deputy chief economist at Capital Economics, suggested that the increase “perhaps provides a tentative sign that firms are passing on more of April’s rise in National Insurance Contributions in their selling prices”.

Commenting on the inflation rate, Chancellor Rachel Reeves said: “This government is investing in Britain’s renewal to make working people better off.”

But shadow chancellor Mel Stride called the latest inflation figures “deeply worrying for families”.

“Labour’s choices to tax jobs and ramp up borrowing are killing growth and stoking inflation – making everyday essentials more expensive,” he said.

The ONS said that some of the biggest price rises came from chocolate which increased at the fastest pace for almost 10 years.