UK inflation rose 2.1 percent year-on-year in May, beating economist consensus expectations of 1.8 percent and significantly higher than the 1.5 percent rate in April.

Despite the inflation increase being greater than expected, Sam Pham, an investment strategist at Tilney Smith & Williamson, said the price increases appear consistent with reopening of the UK economy post Covid-19.

“Nevertheless, we would reiterate that inflation risks remain to the upside due to the scale of stimulus and the UK economy reopening,” he warned.

Jason Borbora-Sheen, co-portfolio manager of Ninety One diversified income and...