UK Inflation Surprisingly Holds at 2.8%

2026-06-17 06:08 By Kyrie Dichosa 1 min. read

The annual inflation rate in the UK stood at 2.8% in May 2026, unchanged from the previous month and below market expectations of 3.0%.

The reading remained at its lowest level since March last year.

Inflation slowed in housing and household services (2.7% vs. 3.0% in April), the softest level in almost two years, as owner-occupiers’ housing costs continued to ease, while food and non-alcoholic beverages decelerated further (2.2% vs. 3.0%), hitting their lowest level since December 2024.

Price growth also moderated in clothing and footwear (0.2% vs. 0.7%) and recreation and culture (1.5% vs. 1.7%).

This was offset by upward pressure from transport inflation, which accelerated sharply to 6.8%, the highest since December 2022, up from 4.5% in April, driven by higher motor fuel prices, rising air fares, and an upward effect from vehicle excise duty (VED).

On a monthly basis, the CPI rose by 0.2% in May, below forecasts of a 0.4% gain and easing from a 0.7% increase in April.



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UK Inflation Surprisingly Holds at 2.8%
The annual inflation rate in the UK stood at 2.8% in May 2026, unchanged from the previous month and below market expectations of 3.0%. The reading remained at its lowest level since March last year. Inflation slowed in housing and household services (2.7% vs. 3.0% in April), the softest level in almost two years, as owner-occupiers’ housing costs continued to ease, while food and non-alcoholic beverages decelerated further (2.2% vs. 3.0%), hitting their lowest level since December 2024. Price growth also moderated in clothing and footwear (0.2% vs. 0.7%) and recreation and culture (1.5% vs. 1.7%). This was offset by upward pressure from transport inflation, which accelerated sharply to 6.8%, the highest since December 2022, up from 4.5% in April, driven by higher motor fuel prices, rising air fares, and an upward effect from vehicle excise duty (VED). On a monthly basis, the CPI rose by 0.2% in May, below forecasts of a 0.4% gain and easing from a 0.7% increase in April.
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