UK inflation has held steady at 2.8 per cent in May, defying expectations of a rise and offering some relief to households and policymakers, the Office for National Statistics has confirmed.
Economists had widely predicted that inflation would tick up to 3 per cent last month, making the unchanged figure a welcome surprise. The rate of price rises matching April’s level suggests that cost pressures remain broadly stable for now.
Inflation fell to its lowest level in more than a year in April, largely driven by a reduction in household energy bills after Ofgem lowered its energy price cap by 7 per cent — equivalent to around £10 a month for the average household using both electricity and gas. That reduction was driven in part by government measures designed to ease the burden on consumers. May’s unchanged figure suggests those energy savings are continuing to anchor overall price growth.
The news will be welcomed by the Bank of England as it weighs decisions on interest rates, with easing inflation reducing pressure to keep borrowing costs elevated. For households, it provides further evidence that the sharp cost-of-living pressures of recent years may be continuing to moderate, though prices are still rising faster than the Bank’s 2 per cent target.
