Inflation rates remain unchanged at 8.7% in May - why these are terrible figures

Inflation figures have risen again. Credit: PA

Underlying or core inflation rose in May by 7.1%, up from 6.8% in April, and the highest rate since March 1992.

The services annual rate of inflation rose from 6.9% to 7.4%.

It's very bad news for anyone with a mortgage or any other debt.

Interest rates will be higher for longer because these are the measures the Bank of England looks at when judging whether inflation risks becoming endemic.

There is a serious risk that interest rates will be lifted tomorrow by 0.5%, double recent rises.

This is at a time when the US Fed is pausing rate rises.

There has been a massive policy failure in the UK.

The reputation of the Bank of England is in serious jeopardy.

And as I said last month, Sunak’s pledge to halve inflation this year is also looking in jeopardy - and he cannot blame “international factors” if he misses it.

The troublesome part of UK inflation is home grown.

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