By Daniel Hunter

The Office for National Statistics (ONS) has released data showing that the rate of consumer price inflation (CPI) increased to 2.7% in May, up from 2.4% in April.

According to the ONS April saw an unexpected fall in the rate of inflation, helped by lower petrol prices and air fares.

The Bank of England, which is charged with keeping inflation in check, has said it expects inflation to exceed 3% this year.

CPIH, the new measure of consumer price inflation including owner occupiers’ housing costs, grew by 2.5% in the year to May 2013, up from 2.2% in April.

"Such a breathtaking jump in inflation could herald a sticky summer of discontent for Britain's pensioners," Steve Wilkie, managing director of Responsible Equity Release, commented.

"Anyone living on a fixed retirement income will see their spending power shrinking before their very eyes.

"Inflation can choke the economy as a whole - but for pensioners struggling to make ends meet its impact is even greater.

"Their savings are steadily losing value as inflation consistently outpaces the interest rates paid by most banks, while the galloping increases in the cost of living will stretch their pension income to breaking point.

"UK pensioners will be sweating this summer, hoping the economists' views are on the nose - that this is a temporary blip, and rising prices will ease post-summer and inflation will fall back quickly."

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