UK inflation rate holds steady but reprieve will be short-lived

• The UK's inflation rate held steady at 2.8 per cent for the year to May, according to the Office for National Statistics .
• This figure came as a surprise to most economists, who had predicted a rise to 3 per cent or more.
• Transport prices, including air fares and motor fuel, were the biggest upward contributors to inflation, while falling food and non-alcoholic beverage prices helped to offset this.
• The stable inflation rate is expected to provide the Bank of England with confidence to maintain interest rates at 3.75 per cent.
• Despite the current stability, experts warn that inflation is likely to increase again later in the year due to factors such as rising energy price caps and pressures on food production.

IN FULL

UK inflation rate remains unchanged at 2.8% despite soaring air fares