THE UK's annual inflation rate remained unchanged at 2.8 per cent in May as higher petrol prices were offset by lower food costs, official figures showed on Wednesday.
The Consumer Prices Index matched April's reading of 2.8 per cent, the Office for National Statistics (ONS) said. Analysts had expected inflation to rise to 3.0 per cent.
Chancellor Rachel Reeves said: "While the war in the Middle East pushes prices up globally, we have got the right economic plan and inflation has held steady."
Higher petrol prices followed the US-Iran war, while lower food costs helped keep overall inflation unchanged. Despite the United States and Iran agreeing this week to a deal to end the conflict, inflation could still increase in the coming months as energy costs remain above pre-war levels.
The figures come ahead of the Bank of England's interest rate decision on Thursday. The central bank is expected to keep borrowing costs unchanged after energy prices fell in recent days following the US-Iran deal.
The inflation data also comes before a special vote on Thursday that is expected to begin an attempt to remove Keir Starmer as prime minister.
Long-time Starmer critic Andy Burnham is seeking election to a parliamentary seat in north-west England so he can stand for the Labour leadership and become prime minister.
