Inflation for May remains high at 8.7% putting more pressure on household finances this summer

dailyrecord.co.uk:

The pressure on household finances from the rising cost of living did not ease last month, new figures from the Office for National Statistics (ONS) have revealed, as inflation remained higher than expected.

Consumer Prices Index inflation stayed at 8.7% in May, the same level as in April, despite experts forecasting a fall to 8.4%.It shows that people continue to face higher costs, and is also likely to put more pressure on the Bank of England to raise interest rates even further on Thursday.The ONS said prices of plane tickets, entrance to live music venues, and computer games had particularly hit households during the month, meanwhile the price of petrol and diesel fell compared with a year ago.ONS chief economist Grant Fitzner said: "After last month's fall, annual inflation was little changed in May and remains at a historically high level.

The cost of air fares rose by more than a year ago and is at a higher level than usual for May.”He continued: “Rising prices for second-hand cars, live music events and computer games also contributed to inflation remaining high.

These were offset by a fall in the cost of petrol."Food price inflation remains high, but the rate has eased slightly this month with costs rising more slowly than this time last year."The news is likely to put more pressure on interest rates too.