Great news this morning that inflation is back to normal at 2%. That’s lower than Germany, France and America.

Inflation has fallen back to the Bank of England’s 2% target, delivering a timely boost to the Conservative Party’s election campaign.

The consumer prices index (CPI) dropped to 2% in May, down from 2.3% in April, as revealed by the Office for National Statistics.

UK Inflation hasn’t been this low since July 2021 and is a big turnaround from highs of 11.1% in October 2022 amid an energy crisis caused by the Ukraine war.

Prime Minister Rishi Sunak, who has hinged his election campaign on his economic expertise, hailed the news as “great” and indicative that the economy has “turned a corner.”

The Prime Minister said:

Great news this morning that inflation is back to normal at 2%. That’s lower than Germany, France and America.

When I became Prime Minister, inflation was at 11%. But we took bold action. We stuck to a clear plan and that’s why the economy has now turned a corner.

So, let’s not put all that progress at risk with Labour.

Work and Pensions Secretary Mel Stride echoed the sentiment, telling Sky News: “The Prime Minister made it his number one priority to get inflation down, and he has delivered.”

Despite the positive news, the Bank of England is not expected to cut interest rates at its upcoming meeting tomorrow. However, the latest figures fuel optimism for a potential reduction in borrowing costs at the next meeting in August.

European Union annual inflation was 2.7% in May 2024, up from 2.6% in April. A year earlier, the rate was 7.1% according to Eurostat, the statistical office of the European Union.

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