British inflation remained unchanged in May, strengthening expectations ahead of the Bank of England’s upcoming interest rate decision.
Official figures released on Wednesday showed that the UK Consumer Prices Index stood at 2.8% in the 12 months to May 2026. The annual inflation rate was unchanged from April.
Monthly UK Inflation Rises by 0.2%
On a monthly basis, consumer prices increased by 0.2% in May. This matched the monthly rise recorded during the same period in 2025.
The Consumer Prices Index including owner occupiers’ housing costs, known as CPIH, rose by 3.0% in the year to May 2026. This figure also remained unchanged from April.
Monthly CPIH increased by 0.2%, matching the rate reported one year earlier.
Transport Costs Push Inflation Higher
Transport costs delivered the largest upward contribution to both the CPI and CPIH annual inflation rates during May.
However, lower pressure from food and non-alcoholic beverage prices helped offset part of the increase.
Core UK Inflation Accelerates
Core CPI inflation, which excludes energy, food, alcohol and tobacco, increased to 2.6% in May. This was slightly higher than the 2.5% rate recorded in April.
Meanwhile, annual goods inflation slowed from 2.4% to 2.0%. In contrast, services inflation climbed sharply from 3.2% to 3.7%.
The increase in services inflation may attract particular attention from Bank of England policymakers, as they assess whether price pressures are easing across the wider economy.
Core CPIH Remains Unchanged
Core CPIH inflation remained at 2.8% in the 12 months to May 2026.
The annual CPIH goods inflation rate declined from 2.4% to 2.0%. However, CPIH services inflation increased from 3.4% in April to 3.6% in May.
The latest inflation figures were published one day before the Bank of England’s interest rate announcement, placing additional focus on the central bank’s assessment of persistent services inflation.
