Inflation unchanged at 0.3% as food price falls balance out rising travel costs

Inflation remained unchanged last month as the rising cost of transport and eating out was offset by sliding clothes and food prices, according to official figures.

The Office for National Statistics (ONS) said Consumer Price Index (CPI) inflation was 0.3% in May, unchanged from April when it fell for the first time since last September.

Transport costs climbed 0.9% in May, as the price of diesel stepped up 3p per litre this year compared to 1.5p in 2015. Rising sea fares also had an upward impact, picking up slightly in 2016 after falling a year ago.

The cost of restaurants and hotel bookings were also on the rise, climbing 0.5% in May compared with 0.2% in the same month a year ago, with overnight stays in hotels rising by more than they did in 2015.

But these rises were pegged back as shoppers saw the cost of food and non-alcoholic beverages drop 0.4% between April and May, as vegetable and confectionery prices took a tumble.

Clothing and footwear price tags were also easing back, down 0.2% between April and May, with a small impact coming from the falling cost of children's clothes.

The price of petrol rose by 2.8p per litre between April and May to 108.7p a litre.

The Retail Price Index was 1.4% in May, up from 1.3% in April.

Economists were expecting CPI to bounce back last month after it took a surprise fall from a 15-month high of 0.5% in March.