UK inflation 2.8% in May as BoE weighs rates

Business Jun 17, 2026

UK inflation stayed put at 2.8% in May 2026, surprising experts who expected it to hit 3%.
This follows a dip in April, thanks to last year's energy bill cuts.
Even though it's still above the government's ideal 2%, this number is a big deal for the Bank of England as they decide whether to change interest rates on Thursday.

BoE likely to hold 3.75%

The Bank of England will likely keep interest rates at 3.75% for now, since inflation isn't quite where they want it yet.
Rising oil prices (blame Middle East tensions and shipping disruptions) have pushed up costs for transport and fuel, but slower food price hikes are helping balance things out.
Economists are hopeful that the recent Trump-Iran deal to reopen a key shipping route could ease these pressures soon.