Britain's inflation rate stayed at a seven-year high just below its 2 per cent target in May against expectations of a dip, pushed higher by food costs.
The Office for National Statistics (ONS) said today that consumer prices rose by 0.4 per cent last month, keeping the annual rate at 1.9 per cent.
Analysts had on average predicted an easing to 1.8 per cent. The figures are likely to boost expectations that the Bank of England (BoE) will be content to hold interest rates at 4.75 per cent for now despite growing signs that consumer spending is slowing down.
BoE Governor Mervyn King said yesterday the central bank had to balance the marked slowdown in spending against various upside risks to inflation.
The ONS said the biggest upward effect came from food and alcoholic beverages, with the main contributions coming from meat, especially poultry and fruit.
The largest downward effect came from transport costs as petrol and diesel costs eased compared to big rises a year earlier, which comfortably outweighed pressure from airfares that rose more than a year earlier.