Inflation eases to 2% in May, hitting official target for first time since July 2021

UK inflation fell to 2% in May, returning to the official target rate for the first time in nearly three years.

In a boost to the Bank of England’s efforts to bring down the consumer prices index, the Office for National Statistics said price pressures eased between April and May.

Lower prices growth will also boost Rishi Sunak after the prime minister made bringing inflation under control one of his main aims. The release of the inflation figures represents the one of the last significant economic indicators before the general election on 4 July.

The fall in inflation was in line with predictions from City economists, who expected a fall to 2%.

The Bank is expected to keep interest rates at 5.25% when it publishes its latest decision on Thursday. Rates are expected to remain on hold for much of the year in response to concerns about a halt in a long downward trend in prices growth.

In May last year, inflation rose by 8.7%, down from more than 11% in October 2022, the highest rate in more than 40 years.

More details to follow ...