UK Inflation Holds Steady at 2.8% in May 2026 as Food Price Pressures Ease

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Source: Dukascopy Bank SA
UK Inflation Holds Steady at 2.8% in May 2026 as Food Price Pressures Ease The UK Consumer Prices Index (CPI) remained unchanged at 2.8% in the year to May 2026, while CPIH held steady at 3.0%. Monthly inflation for both measures was 0.2%. Lower food inflation, which slowed to 2.2%, helped offset rising transport costs, where prices increased by 6.8% due to higher air fares, fuel prices, and Vehicle Excise Duty adjustments. Goods inflation eased to 2.0%, while services inflation rose to 3.7%.



Housing costs continued to contribute positively to inflation, although owner occupiers' housing costs slowed to 3.3%, their weakest growth since June 2022. Internationally, the UK's inflation rate was broadly in line with France and slightly above Germany. The report also highlighted the ONS's expanded use of supermarket scanner data, with around 300 million price observations now used to improve inflation measurement.

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