LONDON (AP) — Inflation in the U.K. dropped modestly in May as a drop in air fares and transport costs were largely offset by rising food prices, particularly chocolate, official figures showed Wednesday.
The Office of National Statistics said consumer prices rose by 3.4% in the year to May, down from 3.5% the previous month.
That means inflation remains substantially above the Bank of England's target rate of 2%. The bank's rate-setting Monetary Policy Committee is due to announce its latest interest rate decision on Thursday. Most economists expect the nine-member panel, which has cut borrowing rates on a quarterly basis since last August, to keep its main interest rate at 4.25%.
The decline was less than expected. Most economists were expecting the rate to come in at 3.3% for May as price rises cooled, following a raft of bill increases the previous month that pushed inflation to the highest level in more than a year.
The higher-than-anticipated outcome was largely due to a 4.4% increase in food and non-alcoholic drink prices. Larder items like sugar, jam and chocolate, as well as ice cream, saw the biggest monthly price hikes, while meat costs also rose.
Economists, including those at the Bank of England, expect inflation to remain above target over the rest of the year. Uncertainty over U.S. President Donald Trump's tariff agenda and the unrest in the Middle East make it difficult to forecast economic developments and the path of interest rates.
“We are sticking with our call for the Bank of England to continue to reduce rates at a quarterly cadence,” said Felix Feather, economist at asset management firm Aberdeen. "But geopolitical uncertainty and risks from U.S. trade policy raise both upside and downside risks to this forecast.”
FILE - A woman walks past a shop offering a clearance sale in Richmond southwest London, Thursday, March 27, 2025. (AP Photo/Alastair Grant, File)
A Ukrainian drone strike killed one person and wounded three others in the Russian city of Voronezh, local officials said Sunday.
A young woman died overnight in a hospital intensive care unit after debris from a drone fell on a house during the attack on Saturday, regional Gov. Alexander Gusev said on Telegram.
Three other people were wounded and more than 10 apartment buildings, private houses and a high school were damaged, he said, adding that air defenses shot down 17 drones over Voronezh. The city is home to just over 1 million people and lies some 250 kilometers (155 miles) from the Ukrainian border.
The attack came the day after Russia bombarded Ukraine with hundreds of drones and dozens of missiles overnight into Friday, killing at least four people in the capital Kyiv, according to Ukrainian officials.
For only the second time in the nearly four-year war, Russia used a powerful new hypersonic missile that struck western Ukraine in a clear warning to Kyiv and NATO.
The intense barrage and the launch of the nuclear-capable Oreshnik missile followed reports of major progress in talks between Ukraine and its allies on how to defend the country from further aggression by Moscow if a U.S.-led peace deal is struck.
Ukrainian President Volodymyr Zelenskyy said Saturday in his nightly address that Ukrainian negotiators “continue to communicate with the American side.”
Chief negotiator Rustem Umerov was in contact with U.S. partners Saturday, he said.
Separately, Ukraine’s General Staff said Russia targeted Ukraine with 154 drones overnight into Sunday and 125 were shot down.
Follow the AP’s coverage of the war in Ukraine at https://apnews.com/hub/russia-ukraine
This photo provided by the Ukrainian Security Service on Friday, Jan. 9, 2026, shows a fragment believed to be a part of a Russian Oreshnik intermediate range hypersonic ballistic missile that hit the Lviv region. (Ukrainian Security Service via AP)
President of Ukraine Volodymyr Zelenskyy, second left, listens to British Defense Secretary John Healey during their meeting in Kyiv, Ukraine, Friday, Jan. 9, 2026. (AP Photo/Danylo Antoniuk)
