UK Inflation Update for May 2026
Published / Last Updated on 17/06/2026
Oil Price Drag Holds CPI at 2.8% Despite Rising Transport Costs
The Office for National Statistics (ONS) has released the UK inflation figures for May 2026. Headline CPI inflation remained unchanged at 2.8% per annum, but the underlying picture is far from stable.
Key Points at a Glance
- CPI held at 2.8%, but almost all major categories saw annual price increases.
- Transport inflation jumped sharply from 4.5% to 6.8%, driven by higher oil and fuel costs.
- Communications inflation rose from 4.5% to 5.1%.
- All other categories saw either slower price growth or outright declines.
- Furniture & household goods was the only category showing deflation at –0.1%.
- The inflationary impact of rising transport costs has not yet fed through to wider goods and services — suggesting upward pressure ahead.
Sector Breakdown: April vs May 2026
| Category | April 2026 % pa | May 2026 % pa | Change |
| CPI – All Items | 2.80 | 2.80 | 0.00 |
| Transport | 4.50 | 6.80 | +2.30 |
| Communication | 4.50 | 5.10 | +0.60 |
| Health | 2.40 | 2.40 | 0.00 |
| Education | 5.10 | 5.10 | 0.00 |
| Housing & household services | 1.40 | 1.20 | –0.20 |
| Recreation & culture | 1.70 | 1.50 | –0.20 |
| Restaurants & hotels | 4.40 | 4.20 | –0.20 |
| Miscellaneous goods & services | 2.60 | 2.40 | –0.20 |
| Alcohol & tobacco | 2.80 | 2.40 | –0.40 |
| Clothing & footwear | 0.70 | 0.20 | –0.50 |
| Furniture & household goods | 0.50 | –0.10 | –0.60 |
| Food & non‑alcoholic beverages | 3.00 | 2.20 | –0.80 |
Retail Prices Index (RPI)
RPI — still widely regarded as a more realistic measure of lived inflation due to its arithmetic mean calculation — rose from 3.0% to 3.1% in May 2026.
This uptick may be an early signal of broader inflationary pressure building beneath the surface.
Commentary
- Bank of England: We expect the Monetary Policy Committee to hold interest rates at tomorrow’s meeting.
- Forward view: With transport costs accelerating and oil prices feeding through supply chains with a lag, we expect higher inflation when July’s figures are released next month.