UK inflation unexpectedly held steady at 2.8 per cent in May, reinforcing expectations that the Bank of England would hold off raising interest rates this week as it assesses the impact of the Middle East conflict on the economy.
Wednesday’s figure from the Office for National Statistics was below the 3 per cent predicted by analysts polled by Reuters and in line with April’s figure.
The ONS said continued pressure from higher petrol prices and an upswing in airfares had been offset by an easing in food inflation and a fall in the cost of domestic heating oil.
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