UK inflation remains at 2.8% in May

Inflation in the United Kingdom held steady at 2.8 percent in May, defying widespread expectations of an increase, according to official data released on Wednesday. The Office for National Statistics reported that the annual Consumer Prices Index rate was unchanged from April's 13-month low, coming in below the 3.0 percent forecast by economists.

The flat reading was attributed to offsetting price movements across different sectors. A significant slowdown in food and non-alcoholic drink inflation, which fell to 2.2 percent from 3.0 percent in April, helped contain the overall figure. Lower prices for items including meat, dairy, and vegetables contributed to the decline. This moderation was counterbalanced by upward pressure from transport costs, which rose 6.8 percent annually. Higher motor fuel prices, up 24.6 percent, and a rebound in airfares were the main contributors.

However, underlying domestic price pressures showed signs of persistence. Inflation in the services sector, a key indicator monitored by the Bank of England, accelerated to 3.7 percent in May from 3.2 percent the previous month. This increase offset a decline in goods inflation, which fell to 2.0 percent....