British inflation held steady at 2.8% in May. This figure matches April's 13-month low. The Bank of England is set to announce its next interest rate decision tomorrow. Economists had predicted a slight increase. The ongoing U.S.-Iran conflict has kept inflation higher than anticipated. Markets are finding some relief from a potential U.S.-Iran deal.

UK May 2026 CPI inflation is forecast to rise to 3.0% from April's 2.8%, with energy prices and geopolitical tensions driving the reversal ahead of the Bank

The Bank of England is due to update its monetary policy on Thursday.