Bank poised to hike interest rates as inflation remains unchanged at 8.7%

There was a sharp rise in the cost of air fares and package holidays in May as consumers rushed to book overseas summer travel. Photograph: Bloomberg/Getty Images

Borrowers have been put on notice for further Bank of England interest rate rises after inflation in the UK unexpectedly remained stuck at 8.7% in May, adding to the pressure on households suffering a surge in mortgage costs.

Figures from the Office for National Statistics (ONS) showed that annual inflation as measured by the consumer prices index was unchanged last month from the rate in April. City economists had forecast a figure of 8.4%.