UK inflation unexpectedly flatlined last month as a slowdown in food price rises offset pressure from airfares, according to official figures. It came despite fears that the Iran war effect would start to show on the economy.
Inflation Remains Steady
The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation was recorded at 2.8% in May, the same rate as in April. It was lower than expected by economists, who had predicted an uptick in inflation to 3%.
Offsetting Factors
ONS chief economist Grant Fitzner said: “After last month’s slowdown, inflation held steady in May as various price movements offset each other. The main upward movement came from transport with airfares, vehicle taxes and petrol prices all pushing up inflation. These were offset by lower food prices, with decreases in inflation seen across a range of meat, dairy and vegetable items compared to last month, as well as the cost of domestic heating oil, which fell back after climbing in recent months.”
Food inflation slowed, easing pressure on households, while transport costs including airfares and petrol prices rose. The data suggests that the impact of geopolitical tensions on the economy has not yet materialized as feared.
