May 2025 Inflation rate
The Consumer Prices Index for May was 138. That reflects a 12-month inflation rate of 4.0%, slightly down from 4.1% in April. On a monthly basis, CPIH rose by 0.2%, compared to a 0.4% rise in May 2024.
The main causes are:
Utility Bills Surge: Regulated increases in energy and water bills kicked in from April. Ofgem raised the energy price cap by 6.4%, and average water bills jumped by 26%, adding significant pressure to household budget
Rising Labour Costs: The national living wage rose from £11.44 to £12.21 per hour, and employers faced higher National Insurance contributions. These changes pushed up costs, especially in sectors like hospitality and retail, which often pass them on to consumers
Food Prices Food and non-alcoholic beverage inflation climbed to 4.4%, with notable increases in items like eggs, coffee, and beef. This was one of the biggest upward contributors to May’s inflation rate
Transport Costs Dropped: On the flip side, transport prices fell—particularly airfares and motor fuel—helping to offset some of the upward pressure.
Furniture and Household Goods: Prices in this category rose sharply, contributing to the inflation uptick, possibly reflecting delayed effects of supply chain costs and wage increase
But lets get on to the type of Investments that can help protect the saver form the ravages of inflation. The figures below were taken on the 31st May 2025.
The UK FTSE 500: 4759.54 up from Aprils 4577.12 increase 3.98%
The S&P 500 5911.69 up from April’s 5569.06 increase a whopping 6.15% increase
Vanguard FTSE Gobal All Cap Fund £222 up from Aprils 210.97 increase a good 5.22%
Gold 3289.57 down from Aprils 3294.14 decrease of a negligble 0.13%
Bitcoin 103892.45 up from Aprils 94207.31 increase a thumping 10.28%
Finally the subject of my musings is the ISA Portfolio £253775.81 up from Aprils £242709.74 increase of 4.55% .
It is more meaningful, I think to have an APR basis. It reveals the truth in a way we all understand. Not some non-descript graph where the scaling isn’t shown, nor any reference to what the various coloured lines represent.
A new index introduced is the UK house Prices Index. This reflects average house prices across England Scotland and Wales and will not reflect regional differences. So is the English mans home his castle and is it a good investment?
The clear winner still is Bitcoin, and the UK is proving to be a miserable place for investment and property is not so hot either.Its long term average from 1995 is 5.7%. The only justification for it is you have to live somewhere and renting isn’t an option.
I have spent some time looking at UK companies, whilst most shouldn’t be bought the ones that have high percentage returns do just as well as any equivalent company in the world.
Current Isa portfolio as of 26th June 2025.
