UK inflation holds steady at 2.8% in May

UK inflation remained unchanged at 2.8% in May, according to the Office for National Statistics (ONS). This figure matches the 2.8% recorded in April, indicating a pause in the recent downward trend of price increases. The ONS attributed the steady rate primarily to slower rises in the cost of furniture and household goods, which were partially offset by higher prices for motor fuels. Core inflation, which excludes volatile items like energy, food, alcohol, and tobacco, also held steady at 3.9% in May, the same as the previous month. Services inflation, a key indicator for the Bank of England, saw a slight decrease to 5.7% in May from 5.9% in April. This persistent inflation rate comes ahead of the Bank of England's monetary policy announcement scheduled for Thursday, where interest rate decisions will be revealed. Economists widely anticipate the Bank of England will maintain its current interest rate of 5.25% at this meeting, given the sticky inflation figures.