FX.co ★ UK inflation accelerates to 2.9% in May

Britain’s consumer prices rose by 2.9% year-on-year in May 2017, at the fastest pace since June 2013, the Office for National Statistics said. In April, prices advanced by 2.7%. Economists had expected May’s figure to be unchanged from April.

A measure of core inflation, which strips out food, alcohol, and energy prices, rose by 2.7% on a yearly basis, marking the fastest pace of growth since November 2012. The index grew by 2.4% in April.

On a monthly basis, prices increased at a 0.3% rate in May, following a 0.5% rise in April, amid a weaker pound, weighing down consumer spending.

UK GDP growth in the first quarter of 2017 slowed to 0.2% from 0.7% in the fourth quarter. Consumer spending edged up by 0.3% in January to March.

The Retails Price Index (RPI), which tracks changes in retail prices, grew by an annualized 3.7% and rose by 0.4% month-on-month.

Food prices rose by 2.1% on a yearly basis in May, alcohol and tobacco prices increased at a 4.9% pace, while prices for footwear and clothes were up 3.1%. Transportation prices rose by 4.7%, while prices for education grew by 4.3%.