UK inflation rate expected to rise when latest figures released

Live Reporting Edited by Matt Spivey and Nathan Williams A quick guide to inflation published at 06:26 BST Image source, Getty Images Inflation measures the pace of price increases of goods or services over a period of time and it is one of the figures that give us an idea of how well the UK economy is doing. A classic example is that if a bottle of milk costs £1 but is £1.05 a year later, then annual inflation is 5%. The Office for National Statistics tracks the prices of hundreds of items - from regular supermarket goods, to fuel, to travel costs and home furnishings - to work out the overall rate of inflation. That "basket of goods" is regularly updated to reflect shopping trends, as consumer preferences change, and this year items including alcohol-free beer, dashboard cameras and pet grooming were added. The main measure of inflation is the Consumer Prices Index, which is updated each month. Benefits, pensions and interest rate decisions by the Bank of England are all affected by inflation. The Bank has a target of 2% for the CPI. High energy and food costs expected to push up inflation published at 06:18 BST Marc Ashdown Business correspondent The pace of price rises might have surprisingly eased in April, but the impact of the Iran war is now starting to properly filter through to our food, energy and fuel costs. The consensus among economists is for 3% inflation in the year to May, up from 2.8% the previous month - but some see prices possibly rising by as much as 3.2%, driven by the high cost of energy and food. While the markets have been cheered by the outline agreement between the US and Iran to end the war - which means vital supplies can (in theory) soon start transiting the crucial Strait of Hormuz once more - the lag effect of war will weigh on the inflation picture for months to come. An acceleration in costs in the services sector, coupled with higher air fares and car duty have been the main factors so far, but there may be more pain to come across the economy over the coming months. Investors are hoping a relatively swift return to normality will amount to a bump rather than a spike in inflation, and much will ride on the Bank of England. Policymakers were expected to raise interest rates up to three times this year due to the conflict. They meet again on Thursday, with the city now betting that rates will be held, at least for now. Fall in energy bills drove drop in UK inflation rate to 2.8% in year to April published at 06:12 BST The previous set of figures published on 20 May saw the UK rate of inflation fall to 2.8% in the year to April. That was lower than the 3.3% figure recorded in the 12 months to March. The fall was driven by lower electricity and gas prices, after the government's energy bill support package came into force, the Office for National Statistics said. UK inflation rate expected to rise, economists say published at 06:05 BST The latest UK inflation rate is expected to rise when new figures are released this morning, according to economists. The official figure for April was 2.8%, a fall from the 3.3% figure recorded in the 12 months to March. Inflation is the increase in prices over time, it affects how much money people can spend and borrowing costs. We're expecting the Office for National Statistics (ONS) to publish the latest data at 07:00 BST . We'll bring you the latest updates and analysis right here on this page.