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Wed, 17 Jun 2026

Wed, 17 Jun 2026 Inflation unexpectedly steady as food price rises slow

Higher petrol prices were offset by slower price rises for meat, dairy and vegetables, according to the ONS.

* Inflation remained at 2.8% in the year to May.
* Food price rises slowed to a 17-month low, with food inflation falling from 3% to 2.2%.
* The pace of price increases in meat, dairy and vegetables eased.
* Transport costs rose by the fastest rate, with motor fuels up 24.6% and overall transport inflation at 6.8%, the highest annual rate since December 2022.
* Beef and veal prices rose 9.4% in the year to May, compared to 13.2% in April and 18.8% in March.
* Experts had expected inflation to rise to 3% in May, but a US-Iran peace deal could lead to smaller price increases.
* The Bank of England is expected to hold interest rates at their current level of 3.75%.
* Economists predict that underlying inflationary pressures have yet to strengthen, supporting a decision to hold interest rates on Thursday.