Inflation & Prices
UK Inflation Falls to 2% Goal for First Time in Three Years
- Figures allow Rishi Sunak to declare victory on prices
- Services prices stronger than expected, dashing hopes on rates
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British inflation fell back to the Bank of England’s 2% target for the first time in almost three years, a milestone that likely comes too late to improve the political fortunes of Prime Minister Rishi Sunak before the looming election.
Consumer price increases eased in May from 2.3% the month before, the Office for National Statistics said on Wednesday. Those figures should keep the central bank on track to cut interest rates in the coming months, even though Bank of England officials have signaled they are unlikely to announce a policy shift on Thursday due to the election campaign.