U.K. inflation holds at 2.8% in May, below forecasts for a rise to 3%

According to CNBC, U.K. inflation held at 2.8% in May, below the 3% annual rate expected by economists polled by Reuters, after cooling to 2.8% in April. The Office for National Statistics said transport was the biggest contributor to rising prices in May, partly offset by falling food and non-alcoholic drink prices, with air fares up 10.3% month-on-month alongside higher motor fuel and sea fares. Gasoline prices rose by an average 0.6 pence per liter between April and May, lifting average prices to their highest since November 2022. At its most recent meeting, the Bank of England’s Monetary Policy Committee voted to keep its key interest rate at 3.75%, while LSEG data showed markets pricing a 95% chance the central bank holds rates steady at its next meeting on Thursday.