Even as the summer months offer a bit of relief for travellers with cheaper flight and fuel prices, UK households aren’t quite feeling the benefit at the supermarket checkout.

In May, inflation in the UK didn’t ease as much as economists had hoped—thanks mainly to rising food costs that kept the overall rate stubbornly high.

Inflation Holds Steady in May After Slight April Dip

According to new figures released by the Office for National Statistics (ONS), the Consumer Prices Index (CPI) inflation rate for May landed at 3.4%, only a nudge down from 3.5% in April.

But here’s where it gets a little awkward: the ONS admitted that a data error regarding vehicle tax means April’s rate should’ve been 3.4% too.

They’re not correcting the record officially, but it means the May figure didn’t actually drop at all.

Most experts had predicted inflation would dip to 3.3% this month.

So, while the rate didn’t rise, the lack of a notable drop is seen as a disappointment, especially for Chancellor Rachel Reeves, who’s been trying to show that inflation is finally cooling.

Chancellor Reeves Says More Work Ahead on Cost of Living

In response to the figures, Reeves admitted there’s still plenty left to do to tackle the cost-of-living crisis.

She pointed out that the government has taken several steps already—such as extending the £3 bus fare cap, funding free school meals for over 500,000 more children, and pushing ahead with plans to offer free breakfast clubs in all schools.

“We’ve made tough choices to stabilise the economy after the chaos of double-digit inflation under the last government,” Reeves said. “But we know we’re not done.

Our mission is to put more money in people’s pockets.”

ONS Breaks Down What’s Keeping Prices High

So what exactly is keeping inflation sticky? According to ONS acting chief economist Richard Heys, it’s a tug-of-war between falling and rising prices.

On the bright side, airfares dropped—thanks in part to changes in when Easter and school holidays fell this year—leading to cheaper travel.

Motor fuel prices also eased.

But those savings were cancelled out by rising grocery bills, especially for items like chocolates and meats.

The cost of furniture and household goods, like fridge freezers and vacuum cleaners, also crept up.

‘Awful April’ Price Hikes Still Weighing on Families

May’s figures still reflect the knock-on effects of what many dubbed “Awful April,” when a flood of price hikes hit households all at once.

Energy bills climbed due to Ofgem’s 6.4% hike to the energy price cap, which added about £9.25 per month to the average home’s expenses.

That wasn’t all—water bills, council tax, broadband and mobile contracts, and even TV licence fees also went up, further stretching budgets.

Geopolitical Tensions Could Drive Inflation Even Higher

And just as the UK tries to rein inflation in, there’s a new concern on the horizon: oil prices.

Tensions in the Middle East flared recently after Israel launched an attack on Iran’s nuclear programme, raising fears that oil supply from the region could be disrupted.

Since energy prices are one of the biggest drivers of overall inflation, any fresh spike in crude oil costs could reverse the recent progress made in bringing inflation down from the peaks of the cost-of-living crisis.