Bank of England and government called to support jobs and businesses as inflation holds steady
UK inflation held steady at 2.8% in May, defying forecasts, as rising air fares and fuel costs pushed transport inflation to 6.8%, its highest since November 2022. Trade union leaders urged the Bank of England and government to cut interest rates and introduce emergency measures to support jobs and businesses amid economic pressures linked to the war on Iran and rising living costs." "article": "UK inflation remained unchanged at 2.8% in May, according to the Office for National Statistics, contrary to economists’ expectations of a rise to 3%. The steady rate marks the lowest level since March 2025, driven by a slowdown in food price increases despite higher transport costs, including air fares and fuel, pushing transport inflation to 6.8%—its highest since November 2022. The Bank of England has warned inflation could climb to 3.6% later this year due to economic fallout from the war on Iran. Chancellor Rachel Reeves defended the government’s economic plan, citing protections like energy bill cuts, fuel duty freezes, and rail fare freezes to shield families and businesses from rising costs. Trade union leaders criticized the government’s approach, arguing workers face worsening financial strain. TUC general secretary Paul Nowak blamed US President Donald Trump’s ‘illegal war’ for economic pressures, urging the Bank of England to resist rate hikes and instead implement rate cuts. He also called for an emergency social tariff to reduce bills for two-thirds of struggling households. Unite general secretary Sharon Graham accused the government of imposing ‘stealth taxes’ while failing to address profiteering or provide clear solutions for workers. She warned that rising costs leave workers feeling financially worse off, despite government claims of support. The data comes ahead of the Bank of England’s interest rate decision, with unions pushing for immediate action to ease economic pressures on households and businesses. The government insists its policies are protecting families, but critics argue more direct intervention is needed.
UK inflation remained unchanged at 2.8% in May, according to the Office for National Statistics, contrary to economists’ expectations of a rise to 3%. The steady rate marks the lowest level since March 2025, driven by a slowdown in food price increases despite higher transport costs, including air fares and fuel, pushing transport inflation to 6.8%—its highest since November 2022. The Bank of England has warned inflation could climb to 3.6% later this year due to economic fallout from the war on Iran. Chancellor Rachel Reeves defended the government’s economic plan, citing protections like energy bill cuts, fuel duty freezes, and rail fare freezes to shield families and businesses from rising costs. Trade union leaders criticized the government’s approach, arguing workers face worsening financial strain. TUC general secretary Paul Nowak blamed US President Donald Trump’s ‘illegal war’ for economic pressures, urging the Bank of England to resist rate hikes and instead implement rate cuts. He also called for an emergency social tariff to reduce bills for two-thirds of struggling households. Unite general secretary Sharon Graham accused the government of imposing ‘stealth taxes’ while failing to address profiteering or provide clear solutions for workers. She warned that rising costs leave workers feeling financially worse off, despite government claims of support. The data comes ahead of the Bank of England’s interest rate decision, with unions pushing for immediate action to ease economic pressures on households and businesses. The government insists its policies are protecting families, but critics argue more direct intervention is needed.
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