Britons feel the squeeze as inflation rises to four-year high of 2.9%

Rising cost of package holidays one factor in unexpected May increase, with inflation continuing to outpace UK wage growth

UK inflation rose to a four-year high in May as the pound's sharp fall since the Brexit vote worked its way through the economy, intensifying the squeeze on household budgets.

The increasing cost of computer games and package holidays helped push up inflation to 2.9% last month, above the expectation of economists that it would remain at the 2.7% rate seen in April. The year-on-year rise in the consumer prices index (CPI) means prices continue to go up faster than wages for many workers, further denting living standards.

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