UK inflation holds at 2.8% in May as services prices climb to 3.7%

UK consumer price inflation held at 2.8% in the year to May 2026, unchanged from April, while services inflation rose to 3.7% (ONS, 17 June). Sticky services prices are what the Bank of England watches most closely, so this trims the odds of a near-term Bank Rate cut. For buyers, cheaper mortgage pricing likely arrives gradually rather than in a step change; for sellers, demand holds steady rather than accelerating. A holding pattern, not a turn.