Inflation in the UK economy jumped to 2.9% for the month of May, according to the latest figures from the Office of National Statistics (ONS). Prices on UK shelves increased at the fastest rate in four years as the weaker value of sterling leads to rising import costs.

The ONS figures indicate that retailers are starting to pass on this rising cost of imports to UK consumers instead of attempting to absorb the effects of a depreciated pound in their own profits or passing the costs back on suppliers.

Food inflation

The ONS said the increase in the UK’s inflation rate in May was driven by increasing food prices among other things. Food price inflation accelerated by 2.5% to leave the annual rate of food price inflation in the UK running at 2.1% for 2017.

The ONS said there was a small upward effect on meat prices on UK retail shelves, particularly for pork products. Prepared consumer foods saw the highest rate of price increase.

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UK inflation jumps to 2.9% as weak sterling bites

Food prices on UK shelves increased at their highest rate since November 2013, as a weaker sterling leads to a rise in the cost of imported goods.