UK inflation stays at 2.8% as slowing food prices offset rising transport costs

May’s figure confounds forecasts of an increase to 3% as Bank of England prepares to set interest ratesAnalysis: benign data signals a softer hit than fearedUK inflation unexpectedly remained at 2.8% in May, as rising energy costs caused by the Iran conflict were offset by slower increases in food prices.The unchanged reading on the consumer price index measure of inflation (CPI) confounded economists’ expectations of a 3% increase as the conflict restricted global energy flows – and raised hopes that the impact of the war on prices might be more muted than feared. Continue reading...