17 Jun 2026
The UK's inflation rate remains at 2.8% in the year to May, according to the latest data from the Office for National Statistics (ONS).
Economists had been expected the pace of price rises to increase to 3%.
The ONS said the inflation rate held steady as rises in the prices of air fares, vehicle taxes and petrol was offset by an ease in food prices.
The price of petrol and diesel soared by 24.6% in the 12 months to May 2026 - the highest since September 2022.
Alpesh Paleja, Deputy Chief Economist at the Confederation of British Industry, said the figures were a welcome surprise.
She continued: 'But this is likely to be the calm before the storm, with price pressures set to see a pronounced rise over the coming months. The direct contribution from higher energy costs is set to increase – particularly with households' energy bills rising from June – and this is likely to feed through to other parts of the inflation basket.
'That remains true despite the deal between the US and Iran to extend the ceasefire and reopen the Strait of Hormuz.
'However, the deal does reduce the risk of the more severe inflation scenarios that had been feared if the conflict escalated further or energy infrastructure suffered additional damage. While households are still likely to face a prolonged squeeze on living standards, the outlook is now less challenging than it appeared only a few weeks ago.'