UK inflation rises by 8.7% – London Business News | London Wallet

The Consumer Prices Index shows prices rose by 8.7% in the year to May, matching the 8.7% recorded in April, the Office for National Statistics has reported.

That is higher than the 8.4% inflation rate forecast by City economists, and adds more pressure onto the Bank of England to keep raising interest rates.

Since peaking at 11.1% in October, inflation has dropped a little – but remains over four times above the BoE’s 25 target.

The data comes as the government is under growing pressure to intervene to help millions of households facing a “ticking timebomb” of higher mortgage payments ahead of the next election.