UK inflation unexpectedly stays at 2.8% as food price falls offset transport costs
Summary
UK inflation stayed at 2.8% in May, unchanged from April, as higher transport and fuel costs were balanced by slower rises in food prices. This came despite concerns about the Middle East conflict causing higher energy prices.Key Facts
- UK inflation rate was 2.8% in May, the same as in April.
- Transport costs, including airfares, vehicle taxes, and petrol prices, increased inflation.
- Food prices grew more slowly, with prices of meat, dairy, and vegetables falling compared to April.
- The cost of domestic heating oil decreased after recent rises.
- Raw material costs, like chemicals, kept increasing.
- Factory output costs slowed, helped by lower prices for cars made in the UK.
- Chancellor Rachel Reeves highlighted government actions, like energy bill cuts and freezes on fuel duty and rail fares, to support families and businesses.
- The Bank of England is expected to keep interest rates at 3.75% as it watches inflation and the impact of global events.
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