UK Inflation Holds At 2.8% Year Over Year In May

The United Kingdom’s consumer price index rose 2.8% year over year in May, matching April’s pace and coming in slightly below the 3.0% consensus forecast. The reading showed no change from April’s 2.8%, indicating that headline inflation has stabilized after several months of steady declines from last year’s higher levels. The figure remains close to the Bank of England’s 2% target, marking continued disinflation momentum since mid‑2025. Core goods prices and energy costs provided the main drag on overall inflation, offsetting modest increases in services and food categories. Compared with the 12‑month average of around 4%, May’s rate underscores a significant easing in price pressures as supply conditions normalize and wage growth moderates. Sterling traded little changed after the release, while markets focused on the Bank of England’s upcoming policy announcement later this week. Updated 6/17/26