Inflation remains at 2.8%, slightly lower than expected

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.