UK Inflation Holds at 2.8% in May

The UK's annual inflation rate remained at 2.8% in May, defying expectations of a rise driven by the Iran war's impact on energy costs.

Slower food price rises offset higher transport costs, providing some relief ahead of the Bank of England's interest rate decision.

The Office for National Statistics said the Consumer Price Index was unchanged from April's 13-month low.

Economists had predicted an uptick to 3%, but the flat reading suggests price pressures were weaker than feared even before the US-Iran deal sent energy costs tumbling.