UK inflation holds steady at 2.8% in May

U.K. inflation held at 2.8% in May, slightly below expectations, official figures showed on Wednesday. Economists polled by Reuters had been expecting the annual inflation rate to rise to 3% in May. Inflation cooled to 2.8% in April, but the drop — attributed to a change to the U.K.'s regulated energy price cap — was expected to be short-lived. The price cap is due to rise by 13% later this summer, when energy costs will hit a 2-year high. The U.K.'s May print fell below the euro zone's 3.2% reading for May, and well below the U.S. May inflation rate of 4.2%. Britain's Office for National Statistics said Wednesday that transport had been the biggest contributor to rising prices in May, partially offset by falling food and non-alcoholic drink prices.

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