UK inflation was unchanged in May 2026. The Consumer Prices Index (CPI) rose by 2.8% over the year, the same rate as in April according to the Office for National Statistics (ONS).
Higher transport costs were offset by slower food inflation. Transport prices rose 6.8% over the year, the steepest annual rate since December 2022.
Air fares climbed 10.3% between April and May, a movement the ONS partly attributes to the timing of Easter, which fell early this year and left April fares unusually low.
Petrol reached 157.4 pence per litre on average, the highest since November 2022, and motor fuel prices overall were up 24.6% on the year.
Food and non-alcoholic drink inflation slowed to 2.2%, the lowest since December 2024, with falls across meat, dairy, vegetables and fish. Domestic heating oil also fell sharply over the month after rising in recent months.
ONS Chief Economist Grant Fitzner commented: "After last month's slowdown, inflation held steady in May as various price movements offset each other. The main upward movement came from transport with airfares, vehicle taxes and petrol prices all pushing up inflation.
“These were offset by lower food prices, with decreases in inflation seen across a range of meat, dairy and vegetable items compared to last month, as well as the cost of domestic heating oil, which fell back after climbing in recent months.
“The annual cost of raw materials continued to increase, led by rises in the cost of chemicals, while the increase in the costs of goods leaving factories slowed, partly due to a drop in the cost of domestically produced cars."
Core CPI, which excludes energy, food, alcohol and tobacco, edged up to 2.6%. Services inflation rose to 3.7%, while goods inflation slowed to 2.0%.
Persistent services inflation remains the Bank of England's main concern and could delay any cut to interest rates.
What this means for you
At 2.8%, inflation is still above the Bank of England's 2% target. Money held in cash that earns less than that rate is losing value in real terms.
Persistent services inflation also gives the Bank reason to hold rates higher for longer, which has a bearing on the cost of a new fixed-rate mortgage, the rate available on an annuity, and the relative appeal of cash against bonds.
The national figure may not reflect your own experience. If a large share of your spending goes on motoring, your personal rate is likely running well above 2.8%. If you spend more on food, you are potentially seeing some relief.
It is important to understand these figures in the wider context of your long-term financial plans. While they are important to be aware of, for the most part it should not change your approach. If you have any questions or concerns, don’t hesitate to get in touch.