UK inflation unexpectedly held steady at 2.8% in May

UK inflation remained unchanged at 2.8% last month in what will come as a relief to Chancellor Rachel Reeves.

The flatlining figure came after a decline in the consumer prices index to 2.8% in April, as cuts to domestic energy bills announced by Rachel Reeves at last year’s budget took effect.

Inflation had slowed to its lowest level for more than a year in April because of a decline in household energy prices for the month.

In better news for consumers, food and non-alcoholic beverages fell in price between April and May this year, and rose on a 12-month basis at a slower pace than previously, making it the biggest downward contributor.