Skip to content 
Search

Latest Stories

UK inflation hits 2.1 per cent as fuel and clothing prices rise

BRITISH inflation has hit the highest level since the outbreak of coronavirus pandemic, with clothing, fuel and oil prices rebounding as the economy reopens, according to official data.

The Consumer Prices Index hit 2.1 percent in May, breaching the Bank of England's 2.0-percent target for the first time since July 2019.


The rate compared with 1.5 percent in April, the Office for National Statistics (ONS) added in a

statement.

"This month's rise was led by fuel prices which fell this time last year, but have jumped this year thanks to rising crude prices. Clothing prices also added upward pressure as the amount of discounting fell," remarked ONS chief economist Grant Fitzner.

Inflation has accelerated sharply since March, when the government began a phased lifing of coronavirus restrictions which has also buoyed the Covid-ravaged economy.

The latest data stoked stubborn fears of a global inflationary spike as economies recover from pandemic turmoil.

The news surprised markets because analysts' consensus forecasts had been for an increase to 1.8 percent.

"The easing of lockdown restrictions and the return to growth was just the medicine Britain's battered economy needed," said Ulas Akincilar, head of trading at Infinox.

"But it's clear the medicine is also causing severe inflationary side efects."

The BoE's key task is to use monetary policy to keep annual inflation close to a government set target level of 2.0 percent to preserve the value of the pound.

The UK reopened non-essential retail, including restaurants and bars, in April, allowing the broader economy to recover further from pandemic fallout.

However, this week it was forced to delay a full reopening due to surging infections caused by

the Delta variant.

The UK government on Monday (14) announced a four-week delay to the full lifing of coronavirus restrictions in England due to a surge in infections caused by the variant, which first appeared in India.

Data showed last week that the economy grew by 2.3 percent in April, recording the fastest monthly expansion since last July on easing virus curbs.

Output contracted by 1.5 percent overall in the first quarter, although it had already begun to bounce back strongly in March with 2.1-percent growth.

More For You

Bangladesh seeks US deal to shield garment industry from tariffs

Workers are engaged at their sewing stations in a garment factory in Savar, on the outskirts of Dhaka, on April 9, 2025. (Photo by MUNIR UZ ZAMAN/AFP via Getty Images)

Bangladesh seeks US deal to shield garment industry from tariffs

BANGLADESH, the world's second-biggest garment manufacturer, aims to strike a trade deal with the US before Donald Trump's punishing tariffs kick in next week, said the country's top commerce official.

Dhaka is proposing to buy Boeing planes and boost imports of US wheat, cotton and oil in a bid to reduce the trade deficit, which Trump used as the reason for imposing painful levies in his "Liberation Day" announcement.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Bond yields ease following Starmer’s support for Reeves

THE COST of UK government borrowing fell on Thursday, partially reversing the rise seen after Chancellor Rachel Reeves became emotional during Prime Minister’s Questions.

The yield on 10-year government bonds dropped to 4.55 per cent, down from 4.61 per cent the previous day. The pound also recovered slightly to $1.3668 (around £1.00), though it did not regain all its earlier losses.

Keep ReadingShow less
modi-trump-getty
Modi shakes hands with Trump before a meeting at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)
Getty Images

Indian exporters watch closely as Trump says trade deal with India likely

THE US could reach a trade deal with India that would help American companies compete more easily in the Indian market and reduce tariff rates, President Donald Trump said on Tuesday. However, he cast doubt on a similar deal with Japan.

Speaking to reporters on Air Force One, Trump said he believed India was ready to lower trade barriers, potentially paving the way for an agreement that would avoid the 26 per cent tariff rate he had announced on April 2 and paused until July 9.

Keep ReadingShow less
Kolhapuri sandal sales surge in India post Prada controversy

Customers shop for 'Kolhapuri' sandals, an Indian ethnic footwear, at a store in New Delhi, India, June 27, 2025. REUTERS/Adnan Abidi

Kolhapuri sandal sales surge in India post Prada controversy

INDIAN footwear sellers and artisans are tapping into nationalist pride stoked by the Prada 'sandal scandal' in a bid to boost sales of ethnic slippers with history dating back to the 12th century, raising hopes of reviving a struggling craft.

Sales are surging over the past week for the 'Kolhapuri' sandals that have garnered global attention after Prada sparked a controversy by showcasing similar designs in Milan, without initially crediting the footwear's origins.

Keep ReadingShow less
modi-trump-getty
Trump shakes hands with Modi during a joint press conference at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)
Getty Images

Key issues in India, US trade talks

TRADE talks between India and the US have hit a roadblock over disagreements on duties for auto components, steel and farm goods, Indian government sources said to Reuters, dashing hopes of reaching an interim deal ahead of president Donald Trump's July 9 deadline to impose reciprocal tariffs.

Here are the key issues at play:

Keep ReadingShow less