UK inflation cools to ease Bank of England rate pressure
Key takeaways
- The consumer prices index rose by 2.8% in the year to May, figures from the Office for National Statistics showed, unchanged from April and below economists forecasts for an increase to 3.0%.
- Sanjay Raja, chief UK economist at Deutsche Bank, said the report would be welcomed by policymakers who want lower rates.
- "Today s CPI report will be one for the doves," he said, noting that headline inflation, core inflation and food prices all came in below expectations.
UK inflation cools to ease Bank of England rate pressure Proactive Wed, June 17, 2026 at 6:35 PM GMT+7 3 min read UK inflation unexpectedly held steady in May, easing pressure on the Bank of England as policymakers prepare to announce their latest interest rate decision this week.
The consumer prices index rose by 2.8% in the year to May, figures from the Office for National Statistics showed, unchanged from April and below economists forecasts for an increase to 3.0%. Monthly inflation slowed more sharply than expected, to 0.2% from 0.7% in April.
The lower-than-expected reading gave economists more confidence that the Bank s monetary policy committee will not increase borrowing costs at this week s meeting or for the rest of the year, particularly after oil prices retreated amid signs of a diplomatic breakthrough between the US and Iran.