Price inflation has risen again, to its highest rate since June 2013.

The Consumer Prices Index (CPI) measure of price inflation rose from 2.7% to 2.9% in the year to May, due in part to the rising cost of foreign package holidays.

With prices rising faster than wages, you might be feeling slightly poorer today.

The latest ONS data on wage growth puts it at 2.1%, with updated figures due out later this week.

Another measure of price inflation, the Retail Prices Index (RPI), also rose in May, from 3.5% to 3.7%.

These might look like modest numbers, but over long-periods of time, any negative gap between wages and prices has a damaging impact on wealth.

Even in the short-term, a squeeze on consumers like this can damage confidence in the economy.

When considering price inflation within your own Financial Plan, it's important to make sensible and realistic assumptions which are kept under regular review.