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UK consumer price inflation held steady in May despite rising transport costs, while producer input inflation accelerated to its highest level in more than three years, data showed on Wednesday, amid continued pressure from energy prices linked to the Middle East conflict. According to the Office for National Statistics, the consumer prices index rose 2.8% in the 12 months to May, unchanged from April. The consumer prices index including owner occupiers’ housing costs, the ONS’s preferred measure of inflation, also remained unchanged at 3.0%. On a monthly basis, both CPI and CPIH increased 0.2%, matching the pace recorded in May 2025. The reading came below the FXStreet-cited consensus of a 0.4% rise. The ONS said transport made the largest upward contribution to the monthly change in annual inflation rates, while food and non-alcoholic beverages provided the largest offsetting downward contribution. Core CPI, which excludes energy, food, alcohol and tobacco, accelerated to 2.6% in May from 2.5% in April. However, the reading was below the 2.7% increase expected by analysts cited by FXStreet. Services inflation rose to 3.7% from 3.2%, while goods inflation slowed to 2.0% from 2.4%. At the factory gate, inflationary pressures remained elevated. Producer input prices rose 8.7% annually in May, accelerating from a revised 7.9% increase in April and marking the strongest annual rise since February 2023. The reading was slightly below the 8.8% increase expected by analysts cited by FXStreet. On a monthly basis, input prices increased 0.2%. The ONS said crude oil provided the largest upward contribution to annual input price inflation. Factory gate output prices rose 4.0% in the year to May, easing slightly from a revised 4.1% increase in April. Output prices increased 0.5% on the month. Import price inflation also strengthened, with the import price index rising 10.1% annually in May, up from 8.8% in April. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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