Inflation unexpectedly remained frozen last month on 8.7 per cent, pilling further pressure on the Bank of England to raise interest rates.
Following two consecutive months of falls, rising prices remained the same in April and May and above what economists had predicted earlier in the year.
The Office for National Statistics said rising prices for plane tickets, recreational and cultural goods and services and second-hand cars added the most to inflation.
Costs for motor fuel fell, the ONS said, putting the biggest downward pressures on inflation.
ONS chief economist Grant Fitzner said: “After last month’s fall, annual inflation was little changed in May and remains at a historically high level.
“The cost of air fares rose by more than a year ago and is at a higher level than usual for May.
“Rising prices for second-hand cars, live music events and computer games also contributed to inflation remaining high.”
The Bank will now almost certainly hike interest rates when officials meet tomorrow.
Some analysts have predicted the base rate could be jacked up by as much as 0.5 per cent, bringing further pain for those on tracker deal mortgages.
Economists had expected rising prices to fall back to 8.4 per cent last month and the fact it remains unchanged is another blow for Rishi Sunak’s pledge to halve inflation by the end of the year.
It comes as millions of households across the UK continue struggling with the cost of living squeeze and the government comes under increasing pressure to intervene on mortgage help.
Earlier this week figures showed that the average cost of a two-year fixed mortgage deal had risen above 6 per cent for the first time since December.
Chancellor Jeremy Hunt said: “We know how much high inflation hurts families and businesses across the country, and our plan to halve the rate this year is the best way we can keep costs and interest rates down.
“We will not hesitate in our resolve to support the Bank of England as it seeks to squeeze inflation out of our economy while also providing targeted support with the cost of living.”
Liberal Democrats Treasury spokesperson Sarah Olney claimed Mr Hunt “just sits on his hands” and said the figures showed that the government is “failing miserably to bring inflation down”.
Calling for a £3bn mortgage protection fund, Ms Olney said: “It beggars belief that ministers are refusing to support hard-pressed families when it’s this Conservative government’s catastrophic failure to run the economy that caused this crisis.”
“This must be the most uncaring government to ever walk into Downing Street. It’s as if ministers are living on another planet.”
More to follow on this breaking news story…