Inflation holds steady at 2.8% as food price rises ease

UK inflation unexpectedly flatlined last month as a slowdown in food price rises offset pressure from airfares, according to official figures.

The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation was recorded at 2.8% in May, the same rate as in April.

It was lower than expected by economists, who had predicted an uptick in inflation to 3%.

ONS chief economist Grant Fitzner said: “After last month’s slowdown, inflation held steady in May as various price movements offset each other.

“The main upward movement came from transport with airfares, vehicle taxes and petrol prices all pushing up inflation.

“These were offset by lower food prices, with decreases in inflation seen across a range of meat, dairy and vegetable items compared to last month, as well as the cost of domestic heating oil, which fell back after climbing in recent months.”

Chancellor Rachel Reeves said UK inflation was holding “steady” despite the Iran war sending prices higher worldwide, as official figures showed the Consumer Prices Index rate remained at 2.8% in May.

She said: “While the war in the Middle East pushes prices up globally, we have got the right economic plan and inflation has held steady.

“We’re protecting families and businesses from rising costs, with cuts in energy bills and freezes in fuel duty and rail fares.

“This is the right economic plan to build a stronger more secure Britain.”