UK inflation hits 9.1%, the best price within the G7

UK inflation hits 9.1%, the highest rate in the G7


The reading, up from 9% in April, matched the consensus of a Reuters poll of economists. Historical records from the Office for National Statistics show May’s inflation was the highest since March 1982 — and worse is likely to come.

Some investors judge Britain to be at risk of both persistently high inflation and recession, reflecting its large imported energy bill and continuous Brexit troubles which could further hurt trade ties with the European Union.

“With the economic outlook so unclear, no one knows how high inflation could go, and how long it will continue for — making fiscal and monetary policy judgments particularly tough,” said Jack Leslie, senior economist at the Resolution Foundation think tank.

Earlier on Wednesday the Resolution Foundation said the cost-of-living hit for households had been compounded by Brexit, which had made Britain a more closed economy, with damaging long-term implications for productivity and wages.

Britain’s headline inflation rate in May was…