UK inflation higher than forecast in May

That’s according to the Office for National Statistics

UK inflation was higher than expected in May as rising food prices offset a drop in air fares and transport costs, new official figures show.

The rate of Consumer Prices Index (CPI) inflation fell to 3.4% in May from 3.5% in April, the Office for National Statistics (ONS) said.

However, the ONS said that an error in vehicle tax data collected meant April’s CPI rate should have been 3.4% – but that it was not revising the official figure.

Most economists were expecting the CPI rate to come in at 3.3% for May as price rises cooled following a raft of bill increases the previous month, that pushed inflation to the highest level in more than a year.

The ONS said that food and non-alcoholic drink prices rose by 4.4% in the year to May – the highest level in more than a year.

Cupboard items like sugar, jam and chocolate as well as ice cream saw the biggest monthly price hikes, while meat costs also rose.

Furthermore, the latest dataset shows that the inflation rate across furniture and homeware was the highest rate over the year to May than since the end of 2023.

On the other hand, air fares fell by 5% between April and May, following the Easter holidays when ticket prices were likely to have been hiked.

Average petrol and diesel prices also dropped, while rail and coach travel costs were also pulling down on the overall rate of inflation last month.

Chancellor Rachel Reeves said there was “more to do” to bring down inflation and help with the cost of living.

She said: “We took the necessary choices to stabilise the public finances and get inflation under control after the double-digit increases we saw under the previous government, but we know there’s more to do.”

Shadow chancellor Sir Mel Stride said: “This morning’s news that inflation remains well above the 2% target is deeply worrying for families.”

ONS acting chief economist Richard Heys said: “A variety of counteracting price movements meant inflation was little changed in May.

“Air fares fell this month, compared with a large rise at the same time last year, as the timing of Easter and school holidays affected pricing. Meanwhile, motor fuel costs also saw a drop.

“These were partially offset by rising food prices, particularly items such as chocolates and meat products. The cost of furniture and household goods, including fridge freezers and vacuum cleaners, also increased.”

Published: 18/06/2025 by Radio NewsHub