Rising food prices have ensured people across the UK are continuing to feel the pinch.
Official inflation figures have been announced this morning (June 18), with a higher rate than experts had predicted, according to the Manchester Evening News.
The Office for National Statistics (ONS) says the rate of Consumer Prices Index inflation stood at 3.4 per cent in May.
That represents a drop of 0.1 per cent from the figure of 3.5 per cent in April - although the ONS says that month's figure was calculated incorrectly.
An update on vehicle tax data means April's CPI should have been 3.4 per cent, the ONS says, although it is not revising the previous figure.
Soaring food prices have offset falling air fares and transport costs in the latest set of official figures.
Many economists expected the rate of inflation to stand at 3.3 per cent in May, a month after the 'Awful April' bill hikes saw costs spiral.
But the ONS says food and non-alcoholic drink prices rose by 4.4 per cent in the year to May, which was the highest level in more than a year.
Cupboard items like sugar, jam and chocolate as well as ice cream saw the biggest monthly price hikes, while meat costs also rose.
Meanwhile, the inflation rate across furniture and homeware was the highest rate over the year to May than since the end of 2023.
On the other hand, air fares fell by 5 per cent between April and May, following the Easter holidays when ticket prices were likely to have been hiked.
Average petrol and diesel prices also dropped, while rail and coach travel costs were also pulling down on the overall rate of inflation last month.
Chancellor Rachel Reeves said there was 'more to do' to bring down inflation and help with the cost of living.
She said: “We took the necessary choices to stabilise the public finances and get inflation under control after the double-digit increases we saw under the previous government, but we know there’s more to do.”
Shadow chancellor Sir Mel Stride said: “This morning’s news that inflation remains well above the two per cent target is deeply worrying for families.”
ONS acting chief economist Richard Heys said: “A variety of counteracting price movements meant inflation was little changed in May.
“Air fares fell this month, compared with a large rise at the same time last year, as the timing of Easter and school holidays affected pricing. Meanwhile, motor fuel costs also saw a drop.
“These were partially offset by rising food prices, particularly items such as chocolates and meat products. The cost of furniture and household goods, including fridge freezers and vacuum cleaners, also increased.”
