UK inflation rate falls to lowest level in three years hitting Bank of England target

19 June 2024, 07:32 | Updated: 19 June 2024, 07:49

By Kieran Kelly

@kellyjourno

Uk inflation fell to 2% in May from 2.3% in April, the Office for National Statistics has said.

It marks the first time it has returned to the 2% target for nearly three years.

It now means inflation meets the Bank of England target, who will be under pressure to cut interest rates.

The fall in inflation is likely to be seized on by Rishi Sunak's Conservatives as a sign their economic plan is working.

Mr Sunak promised at the start of last year to halve inflation, which was achieved towards the end of 2023.

Rishi Sunak will take your calls for a full hour this morning listen live on Global Player, the official LBC app

Mr Sunak hailed the news this morning, insisting the economy had "turned a corner".

“That’s lower than Germany, France and America. When I became prime minister, inflation was at 11 per cent but we took bold action, we stuck to a clear plan and that’s why the economy has now turned a corner,” Mr Sunak said.

“Let’s not put all that progress at risk with Labour. All they would do is spend a load of money, push up inflation and cost every working family £2,000 in higher taxes.”

Labour have said Mr Sunak's £2,000 tax claim is a lie.

Read More: General Election LIVE: Sunak to take your calls as SNP prepare for manifesto launch

Critics have also suggested the Government can not actually do much to control inflation, which defined as the rate at which prices rise in the economy.

Today's figure means prices are still rising, just at a slower rate compared with a peak above 11 per cent in 2022.

Shadow chancellor Rachel Reeves said that despite the drop, "working people remain worse off".

"After 14 years of economic chaos under the Conservatives, working people are worse off. Prices have risen in the shops, mortgage bills are higher and taxes are at a 70-year high," she said.

"Labour has a plan to make people better off bringing stability back to our economy, unlocking investment and delivering reform.

"All the Conservatives are offering is a desperate wish list of unfunded spending promises that will mean £4,800 more on people's mortgages.

"The choice at the election is simple: stability with Labour that will make Britain better off or five more years of chaos with the Conservatives that will mean higher mortgages."

The Tories have denied they have unfunded promises which could push up interest rates in the way Labour claims.