LONDON, June 17 (Xinhua) -- Britain's consumer price index (CPI) rose by 2.8 percent year on year in May, unchanged from the growth recorded in April, data from the Office for National Statistics (ONS) showed on Wednesday.
On a monthly basis, CPI increased by 0.2 percent last month, the same rate as in May 2025, according to the ONS.
The main upward movement came from transport with airfares, vehicle taxes and petrol prices all pushing up inflation, said Grant Fitzner, chief economist at the ONS. These were offset by lower food prices and the cost of domestic heating oil, which fell back after climbing in recent months, he noted.
Harvir Dhillon, economist at the British Retail Consortium, said the headline inflation remained unchanged as supermarkets cut prices for both food and drink in the face of fierce competition. However, it will likely pick up over the coming months as input costs rise due to the conflict in the Middle East.
Although the fuel prices are likely to have peaked, a 12.7-percent increase in energy bills next month will add further upward pressure on prices, he added.
Anna Leach, chief economist at the Institute of Directors, said the steady inflation rate should be more than enough for the Bank of England to keep rates on hold this month. But even a swift end to the Middle East conflict will leave global energy supplies disrupted and prices elevated for a considerable period, driving inflation towards 4 percent by the end of the year.
Caterina Batog, research & economics analyst at the British Chambers of Commerce, said that inflation holding at 2.8 percent in May is better than expected, but businesses remain under sustained cost pressure, battling with higher energy and wage bills.
While any durable easing of tensions is positive news, businesses are unlikely to increase investment while so much uncertainty remains, she said. With business confidence still fragile, firms need clear signals and practical support in terms of easing cost pressures, she added. ■