Inflation comes in below forecasts
The UK inflation rate remained at 2.8% in the year to May, coming in slightly below the 3% increase economists had expected.
The figure suggests prices are rising more slowly than feared, offering some relief for households and businesses despite signs that cost pressures have not fully disappeared.
Transport and food prices balance out
The Office for National Statistics said inflation held steady because higher transport costs were offset by easing food prices.
The latest data raises fresh questions about how household shopping baskets will be affected, particularly as consumers continue to monitor food, fuel, and everyday essentials.
Inflation remains above the Bank target
Although the May figure was better than expected, inflation is still above the Bank of England’s 2% target, which is set by the government.
That means price growth remains a concern for policymakers, even as the latest reading reduces some pressure around the short term outlook.
Reeves and Stride clash over costs
Chancellor Rachel Reeves said Labour is “protecting families and businesses against rising costs”.
Shadow Chancellor Mel Stride repeated his criticism that prices are rising too fast, keeping the political focus on the cost of living.
Bank of England decision comes next
The Bank of England is due to decide tomorrow whether to change interest rates. Economists said the latest inflation figures “strengthen the case” for rates to remain unchanged.
With inflation below forecasts but still above target, the central bank faces a careful decision as it weighs price pressures against the wider economy.
Cost of living remains in focus
The latest inflation report offers a measure of relief, but households are still dealing with prices that continue to rise. Food, transport, and borrowing costs remain key areas to watch as the UK waits for the Bank of England’s next move.
