Inflation rose to 2.1% in May 2021, according to the latest figures from the Office for National Statistics (ONS) – partly due to price rises for clothing, motor fuels, games and recording media.
The Consumer Prices Index (CPI) measure of inflation is up from 1.5% in April 2021 – when it had also jumped from 0.7% in March.
CPI inflation tracks the costs of a ‘shopping basket’ containing around 700 popular goods and services.
Here, Which? reveals why the inflation rate has changed, and how it compares with the top-rate savings accounts and cash Isas currently on the market.
Why has inflation risen?
The main factor that caused May’s inflation rate to rise was a motor fuel price rise, compared with a price fall at the same time last year when the UK was in the midst of the first national lockdown.
There was also an upward effect from prices for vehicle maintenance and repair; membership fees for roadside recovery were discounted in April and therefore increased in May. Prices for these services had also fallen at the same time in 2020.
Other price rises have…
