• Thursday, 18 July 2024

UK inflation returns to 2% target for first time in nearly 3 years

UK inflation returns to 2% target for first time in nearly 3 years

London, 19 June 2024 (PA Media/dpa/MIA) - Inflation in the United Kingdom has returned to the 2% target for the first time in almost three years, just weeks before the nation heads to the polls.

The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation fell to 2% in May, down from 2.3% in April.

It follows nearly three years of above-target inflation, with CPI last recorded at 2% in July 2021, before shooting higher amid a cost-of-living crisis.

The data will be watched closely ahead of the Bank of England’s next interest rate decision on Thursday, but policymakers are widely expected to hold fire on any cuts until after the general election on July 4.

It comes less than three weeks before polling day and as the political parties home in on economic pledges in their manifestos.

Photo: MIA archive