UK inflation holds at 2.8% as transport costs offset food price falls
7 reported1 unconfirmed
UK inflation unexpectedly remained at 2.8% in May, according to a single-source report from The Guardian. The Office for National Statistics reported that higher transport costs, including air fares, motor fuels, and vehicle excise duty corrections, were offset by slower food price rises. Food inflation eased to 2.2%, the lowest since December 2024, with prices falling for meat, dairy, vegetables, and fish. Transport costs rose at an annual rate of 6.8%, the highest since December 2022, driven by air fares, sea fares, and petrol prices reaching 157.4p per litre. Economists cited in the article expect inflation to peak below 4% in the coming months, with the Bank of England likely to hold interest rates steady. The report also noted that average rents in England rose to £1,442 (3.4% annual rate), and UK house prices increased 3.8% year-on-year to £270,000 in April.
What’s reported
UK inflation stayed at 2.8% in May, unchanged from the previous month.
Food inflation fell to 2.2%, the lowest since December 2024.
Transport costs rose 6.8% annually, highest since December 2022.
Average petrol price reached 157.4p per litre, highest since November 2022.
Average UK house price increased 3.8% year-on-year to £270,000 in April.
Average rent in England was £1,442 (3.4% annual rate) in May.
Economists quoted expect inflation to peak below 4% and the Bank of England to hold rates.
Open questions
The article does not specify the exact date of the Bank of England’s next interest rate decision beyond “tomorrow” and “Thursday,” nor does it clarify the precise impact of the US-Iran peace deal on future inflation.
Key figures
James Smith, developed markets economist at ING
Rob Wood, chief economist at Pantheon Macroeconomics
Suren Thiru, chief economist at the Institute of Chartered Accountants in England and Wales
Karen Betts, chief executive of the Food and Drink Federation
Grant Fitner, chief economist at the ONS
Sources: The Guardian
