UK Inflation Holds Steady at 2.8% in May
Quick Look
- UK inflation remained at 2.8% in the year to May, unchanged from April.
- Transport costs saw the steepest rise, while food prices slightly decreased.
- Inflation is expected to continue climbing due to the Iran war's effects, with predictions of a peak between 3.5% and 4% in late 2026.
AI-generated summary
Why It Matters
UK inflation held at 2.8% in May, with transport costs rising fastest and food prices falling slightly. Previous month saw a slowdown due to lower energy prices.
Prices in the UK rose by 2.8% in the year to May, the same rate as the previous month, according to new figures.
Transport costs were rising the fastest, the Office for National Statistics (ONS) said, while the cost of food and non-alcoholic beverages fell slightly.
Inflation is widely expected to keep steadily increasing over the coming months due to the ongoing effects of the Iran war. Many economists have predicted that it would peak at between 3.5% and 4% in the second half of 2026.
Inflation had slowed to its lowest level for more than a year in April because of a decline in household energy prices for the month.
What to Watch
AI outlook — possibilities, not facts
Inflation to peak between 3.5% and 4% in the second half of 2026.
Likely · Within years
Open Questions
- What specific transport costs are rising fastest?
- What is the direct link between the Iran war and UK inflation?
