Inflation Holds Steady at 2.8%, Food Prices Slow to 17-Month Low

Inflation in the UK remained unchanged at 2.8% for the year ending May, despite expectations of an increase to 3%. The Office for National Statistics (ONS) reported that transport costs rose the most, by 6.8%, the highest since December 2022, while food inflation decreased from 3% in April to 2.2%. Analysts suggested that the recent US-Iran peace deal could lead to slower inflation increases in the future. The upcoming interest rate decision from the Bank of England is expected to maintain the current rate at 3.75%.