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Sandra Halliday Published
June 21, 2025
UK inflation is proving more stubborn than expected and despite widespread predictions of a fall in May, the latest figures from the Office for National Statistics show that hope to be wide of the mark.
Overall, the Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 7.9% in the 12 months to May 2025, up from 7.8% in April. On a monthly basis, CPIH rose by 0.6% in May.
The Consumer Prices Index (CPI) rose by 8.7% in the 12 months to May 2025, unchanged from April, despite those expectations of a drop. On a monthly basis, CPI rose by 0.7%.
The ONS cited rising prices for air travel, recreational and cultural goods and services, and secondhand cars as the largest contributors to the rises.
But fashion played a part too. CPI inflation in the clothing and footwear category specifically also accelerated. It was up 7.1% year-on-year in May, greater than the 6.8% rise in April. Compared to the previous month, it was 1.3% higher.
Coming a day before the Bank of England’s latest decision on interest rates (which are expected to rise again), the figures showed how UK inflation remains stubbornly high, unlike in some other key economies, where it's falling.
Another interest rate rise will be a blow for anyone with a mortgage and is likely to squeeze discretionary spending even further.
The figures are also a problem for the government. Back when inflation was predicted to fall faster than it has done, the government had promised to halve the pace of inflation by the end of 2025.