Inflation unexpectedly steady as food price rises slow
BBC News 2026-06-17 08:07:45
Context: Inflation in the UK remained steady at 2.8% in the year to May, defying expectations of a rise to 3%, as the pace of food price rises slowed to a 17-month low. The slowdown in food inflation, driven by decreases in meat, dairy, and vegetable prices, offset increases in transport costs, which rose at the fastest rate over the year. The figures were released by the Office for National Statistics (ONS) and come ahead of the Bank of England's next interest rate decision.
Key Facts
- Inflation in the UK remained at 2.8% in the year to May, according to the Office for National Statistics (ONS), as the pace of food price rises slowed to a 17-month low.
- Transport costs rose by the fastest rate over the year, with motor fuels 24.6% higher in May than the same time last year, and overall transport inflation at 6.8%, the highest annual rate since December 2022.
- Food inflation fell from 3% in the year to April to 2.2% in the year to May, the slowest rate of food inflation since December 2023, driven by decreases in inflation across a range of meat, dairy, and vegetable items.
- The British Retail Consortium (BRC) said easing food inflation showed that the British supermarket sector was highly competitive, but food inflation was likely to rise in the coming months.
- Chancellor Rachel Reeves said the government was "protecting families and businesses from rising costs, with cuts in energy bills and freezes in fuel duty and rail fares", while Shadow Chancellor Mel Stride said "prices are still rising too fast" and criticized Labour's economic plan.