UK inflation unexpectedly stays at 2.8% as food price falls offset transport costs

Flatlining figure confounds forecasts of an increase to 3% as Bank of England prepares to set interest rates

UK inflation unexpectedly remained at 2.8% last month as higher transport and fuel costs were offset by slower food price rises, official figures have shown.

May’s annual price rise reading recorded by the Office for National Statistics came despite the feared impact of the Middle East conflict on energy prices and confounded economists’ forecasts of a rise to 3%.