There is no slowdown in the latest inflation figures, which hit a new 40-year high in May.
The consumer price index rose to 9.1 per cent. last month, according to ONS. It is up from 9 per cent. one month earlier.
Prices rose 0.7 per cent. alone in the month, which marks a slowdown from the pace of 2.5 per cent recorded in April when the new energy price cap came into force. Nevertheless, the figures show that prices are rising throughout the economy.
The retail price index, which is used to determine train ticket prices and to which some index-linked bonds are linked, rose by 11.7 per cent.
All eyes will now be on the Bank of England, which is under pressure to do more to stop runaway inflation.
5 things to start your day
1) Global spending on coal projects is expected to rise The IEA expects about $ 115 billion to be invested in fossil fuel supply chains this year
2) Pioneering vaccine manufacturer Moderna opens first factory in UK The new site will enable a rapid response to future pandemics
3) Archaic railway rules mean that it requires nine workers to ‘change an outlet’ The RMT accused of calling a strike to defend a wide range of outdated practices
4) Telecom executives convened Downing Street to discuss cost-of-living crisis Industry leaders will be asked for suggestions on how to help customers struggling with rising bills
5) Glencore executives could be charged after the company pleaded guilty to bribery How one of Britain’s biggest bribery scandals engulfed the Glencore billionaires
What happened overnight
Equities struggled this morning after a brief respite from last week’s painful route across world markets, where fears of recession continued to grow as central banks raised interest rates to combat decades of high inflation.
While Asia, Wall Street and Europe all enjoyed healthy growth on Tuesday, analysts warned that the depressed mood on trading floors means sales are unlikely to end any time soon.
In early Asian trade, Hong Kong, Singapore, Sydney, Seoul, Taipei, Jakarta and Manila all fell, while Tokyo and Shanghai barely moved. There were small gains in Wellington.
- Corporation: Berkeley Group, Liontrust Asset Management (year-round results); Microfocus (temporary)
- Economy: The Consumer Price Index (UK)producer price index (UK)retail price index (UK)consumer confidence (EU)