The UK's inflation rate has reached a 10-year high of 2.9%, according to the latest figures from the Office for National Statistics (ONS). The Consumer Prices Index (CPI), which measures the change in prices of goods and services, increased by 0.1% month-on-month in May, but rose by 0.3% year-on-year.
The news is likely to be a concern for households and businesses across the country, as rising energy costs and food prices drive up living expenses. The ONS reports that household goods and personal care prices increased by 2.4% over the past 12 months, while transport costs rose by 1.9%.
The Bank of England has been keeping a close eye on inflation, with Governor Andrew Bailey saying in May that it was 'still too high' at 2.5%. The Monetary Policy Committee (MPC) raised interest rates to 0.75% earlier this year, but some economists believe further increases may be needed.
The rise in prices is also having an impact on the FTSE 100 index, which has been affected by concerns about inflation and interest rates. The UK stock market has been volatile in recent weeks, with many investors looking to take profits as global economic uncertainty grows.