UK Inflation Steady at 2.8% in May, Below 3% Expectations

AI Summary

U.K. inflation remained at 2.8% in May, slightly below the expected 3% rise, according to official figures. The May inflation print fell below the euro zone's 3.2% and the U.S.'s 4.2%. Transportation costs significantly influenced the prices, with airfares increasing by 10.3% month-on-month. The Bank of England kept its key interest rate at 3.75%, and markets indicate a 95% chance rates will remain unchanged at the next meeting, though a hike is anticipated later this year.