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The UK's inflation rate remains at 2.8%

ended 17. June 2026

The UK's inflation rate remains at 2.8% in the year to May, the latest figures from the Office for National Statistics (ONS) show.

Transport made the largest upward contribution to the monthly change in both CPIH and CPI annual rates; food and non-alcoholic beverages made the largest, partially offsetting, downward contribution.

Core CPIH (CPIH excluding energy, food, alcohol and tobacco) rose by 2.8% in the 12 months to May 2026, unchanged from the 12 months to April; the CPIH goods annual rate slowed from 2.4% to 2.0%, while the CPIH services annual rate rose from 3.4% to 3.6%.

Core CPI (CPI excluding energy, food, alcohol and tobacco) rose by 2.6% in the 12 months to May 2026, up from 2.5% in the 12 months to April; the CPI goods annual rate slowed from 2.4% to 2.0%, while the CPI services annual rate rose from 3.2% to 3.7%.

  • What is your reaction to the figures? Is it surprising?
  • What has caused it to stay at 2.8% rather than go up?
  • What is the impact on the Pound, on the UK economy, and your average person?

Responses asap.

3 responses from the Newspage community

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Editor
Rohit Kohli
Director at The Mortgage Stop
This is a little surprising, but it is welcome news for borrowers. Many expected inflation to edge up, so holding at 2.8% gives the market some breathing space. The key point is that price pressures are mixed. Transport pushed inflation higher, but food and non-alcoholic drinks helped offset that. Services inflation is still sticky, so this is not a clean win, but it is better than feared. For mortgage borrowers, this keeps things steady for now. It suggests the Bank of England is less likely to be forced into a tougher position to combat inflation, but it is probably still too early for cuts. I would not expect sharp rate reductions from lenders, but the gradual downward tweaks we have seen recently may continue if nothing unexpected knocks confidence.
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Editor
Chris Barry
Director at Thomas Legal
The difference between CPI and CPIH is striking and this is down to a slowing housing market with much smaller price rises. Equivalent rental values associated with the housing calculation of inflation have often been rising significantly but have slowed lately due to a reduction in buyers.

Overall inflation remaining steady below 3% may prompt the MPC to reduce interest rates in the coming months if growth remains low and the economy looks set to retract.
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Anita Wright
Chartered Financial Planner at Ribble Wealth Management
The gap between the headline figure and what people actually feel at the till keeps widening. The basket gets reweighted, the methodology shifts, The number that lands is the one that suits the narrative, not the one that matches your shopping receipt or your energy bill. official CPI is deliberately understated, smoothed by substitution effects and hedonic adjustments that strip out the real loss of purchasing power. The true rate of price rises sits well north of the published 2.8%.