UK inflation stays at 2.8% as slowing food prices offset rising transport costs
UK inflation remained steady at 2.8% in May, as lower food prices balanced out increased transport and energy costs linked to the conflict in the Middle East. The data was better than economists' forecasts of a 3% rise.
Why it matters
Stable inflation figures are critical for the Bank of England's upcoming interest rate decisions and the broader UK economic outlook.
Food price inflation eased to 2.2% – but increased costs faced by farmers often take months to filter through to supermarket shelves, analysts say. Photograph: Martin Lee/Alamy View image in fullscreen Food price inflation eased to 2.2% – but increased costs faced by farmers often take months to filter through to supermarket shelves, analysts say. Photograph: Martin Lee/Alamy Inflation UK inflation stays at 2.8% as slowing food prices offset rising transport costs May’s figure confounds forecasts of an increase to 3% as Bank of England prepares to set interest rates
The report relies on official ONS data and provides a balanced view of economic factors.
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