Positive news: UK inflation rises to 0.1% in May
Published: 16 June 2015
After falling below zero for the first time in 55 years in April, UK inflation has risen 0.2% in the 12 months to May 2015.
The new figure of 0.1% has been reported by the Office for National Statistics and ends the brief flirtation with deflation.
The drop was put down to tumbling oil prices which are now working their way out of the system, according to the Bank of England Governer, Mark Carney.
The rise in inflation has been accredited to a rise in the price air travel in the last twelve months, as well as an increase in food and petrol prices.
While inflation is expected to remain relatively steady as a result of the continuing uncertainty over the Euro, near 0% inflation is seen as positive for households whose spending power will increase.
House prices also rose 5.5% in April, however that figure was down from 9.6% in March. However, this blip is often the case before a Budget and General Election as people wait to see the results before making any decisions.
Figures released by Nationwide earlier this month suggested that house prices increased in May, and the number of cash buyers is on the rise.