UK consumer price inflation remained unchanged at 2.8% in May, holding steady at the same level recorded in April, according to new figures from the Office for National Statistics.
The data confirms a pause in the recent downward trend, though the rate remains well above the Bank of England's 2% target.
3% in March to 2.8% in April, the May stagnation suggests that underlying price pressures are proving sticky.
The persistence of inflation at this level complicates the monetary policy outlook.
While preliminary data showed a decline from 3.3% in March to 2.8% in April, the May stagnation suggests that underlying price pressures are proving sticky.
Markets will now scrutinize whether this plateau is a temporary pause or the beginning of a renewed upward trajectory, particularly given the external shocks currently affecting global energy markets.
Analysts point to the ongoing war in Iran as a primary risk factor that could reverse the recent disinflationary progress.