The annual rate of inflation decreased marginally to 2.2 per cent from 2.3 per cent in April – greater than expectations of a fall to 2.0 per cent.

Today’s figures have surprised on the upside and inflationary pressures are more persistent than expected. This is likely to be partly caused by reduced purchasing power from a much depreciated sterling but may also symbolise that demand in the economy is less weak than in the height of the recession, lessening downward pressure on prices.

However, inflation is likely to fall further in the coming months in contrast with the period from May to September last year when inflation rocketed. It is expected to undershoot the 1.0 per cent mark.

On the consumer price index, prices rose by 0.6 per cent month on month in May from April surpassing expectations of a 0.3 per cent rise. On the wider retail price index, prices rose by 0.6 per cent in May compared to April. This pushed the annual rate of inflation higher to -1.1 per cent from -1.2 per cent in April; the first rise in year on year inflation on the retail price index since September 2008.

One of the drivers of the rise in prices stemmed from the rise in excise duty announced on the Budget - alcohol and tobacco prices rose by 1.6 per cent month on month in May. There were downward contributions to annual inflation from weaker growth in the price of food and non-alcoholic beverages.

Transport costs rose by 1.5 per cent month on month as oil prices pushed towards $70 a barrel in May - with a weaker sterling the UK could be more exposed to rising commodity prices.