Consumer prices inflation rose to 0.1% in May up from -0.1% in April, reversing a brief period of deflation for the UK, writes Sarah Davidson.

Philip Gooding, a statistician at the Office for National Statistics, said: “Last month CPI turned negative, mainly because of falling transport fares due to the timing of Easter. This month, that fall has been reversed.

“In addition, the falls in food and fuel costs over the last year have eased this month, helping to push inflation up.”

Chris Williams, chief executive of Wealth Horizon, said: “The fanfare that accompanied the drop into deflation last month is starting to look a little over-hyped.

“Comparisons between our current economic position and that of the deflationary era of the 1930’s can now come to an end.

“That is not to say that the risk of a prolonged period of low inflation has disappeared. Indeed, we may see the UK hovering around this mark for some months to come unless we experience any shocks to the system, like a sharp recovery in the oil price.

“It is therefore likely that inflation will continue to loiter near to zero for now, before getting back to work and starting to head up in the autumn.”