"UK inflation rose to 2.1% in May, breaking through the Bank of England’s 2% target.

While this was expected, it serves to remind those who believe that the Government should extend several of its support packages that the time is approaching when the economy will need to support itself.

The year-on-year data also exposes just how weak inflation was in May of last year. The country was reeling from the first lockdown as the brakes were slammed on.

This is the first time the Government’s inflation target has been exceeded in over two years.

Economists polled by Reuters expected a rise to 1.8%, but breaking 2% shows that the rate at which prices are rising is well above market expectations.

This points towards a more hawkish outcome from the next MPC meeting, although it is likely that, in line with the Fed and ECB, BoE Governor will try to squeeze as much benefit as he can from the Bank’s QE programme before the fun has to stop and reality returns.

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