UK CPI inflation stayed at 8.7% in May.

Economists had expected it to fall to 8.4%. Core inflation - so stripping out certain items - is at its highest level in the UK for more than 30 years- at 7.1%.

Air travel, recreational and cultural goods and services, and second-hand cars were among the items that saw the biggest price rises, according to the ONS.

Fuel was one of the only areas where prices dropped.

The Bank of England has increased interest rates repeatedly in a bid to bring inflation down to 2%, and the base rate is now at 4.5 per cent. So these latest figures will increase pressure on them to increase rates again on Thursday (June 22). This is causing real concern to homeowners with mortgage rates now at an average of six per cent for a two year fix.