The Consumer Prices Index of annual inflation - the government's target measure of inflation - was 3.3% up in the latest figures to May, from 3% in April. Food and non-alcoholic beverages - mainly meat and vegetable prices - drove it up. Other factors putting big upward pressure on the index were gas and electricity bills, which remained static but had dropped a year ago, and price hikes for books, newspapers and foreign holidays. There was a small upward pressure from alcoholic drinks and tobacco, as drinks prices - especially on spirits - rose after falling the year before. The government's inflation target for the CPI is 2%. The Retail Prices Index rose to 4.3% in May, from 4.2% in April.
MARKET MONITOR A graphic guide to the off-trade
11 July, 2008
Inflation is on the rise