British inflation didn’t budge in May, holding steady at 2.8% year-on-year and surprising markets that had braced for a jump to 3%. The Office for National Statistics published the figure on June 17, giving the Bank of England exactly one day to digest it before its Monetary Policy Committee meets on June 18.
What the numbers actually show
The 2.8% CPI reading marks the second consecutive month at that level. In March, inflation sat at 3.3%, meaning the April and May readings represent a notable step down over a relatively short period.
Transport costs surged at an annual rate of 6.8%, making it the standout contributor to upward price pressure. On the other side of the ledger, housing costs, food prices, and clothing all showed easing pressures.
What the Bank of England is likely to do
