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

Inflation has fallen to its lowest level in three years
Inflation has fallen to its lowest level in three years. Picture: Getty
Kieran Kelly

By Kieran Kelly

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

Listen to this article

Loading audio...

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

Rishi Sunak Campaigns For The Conservatives In North Devon
Rishi Sunak Campaigns For The Conservatives In North Devon. Picture: Getty

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.

More Latest News

See more More Latest News

A series of Israeli strikes have been launched against the Houthi-controlled port city of Hodeidah in Yemen

Israel launches series of air strikes on Houthi-controlled city in Yemen day after group claim deadly attack on Tel Aviv

Jay Slater and his mum, Debbie Duncan

Jay Slater's GoFundMe page hits £70k after teen's mum appeals for funeral donations

Holidaymakers have been left stranded during global IT outage

'We're not being given any information': Furious holidaymaker stranded in Rhodes tells of travel hell after IT outage

A burnt out car in the Leeds suburb of Harehills, after vehicles were set on fire and a police car was overturned as residents were warned to stay home following an outbreak of disorder on Thursday evening. Picture date: Friday July 19, 2024.

Further unrest in Leeds as hundreds take to streets to 'demand return of children' allegedly removed from local family

NHS England has warned of "continued disruption" to GP services into next week.

NHS warns of GP disruption after global IT outage as trains, planes and roads remain in chaos leaving Brits stranded

Planes, trains and roads have been hit by travel chaos following Friday's IT outage.

Holiday hell: Trains, planes and roads in chaos after global IT outage - with thousands of Brits stranded abroad

Graham Gomm

Prisoner who escaped custody at HMP Wormwood Scrubs during hospital trip is arrested following manhunt

Charles and Camilla attend the King's Parade outside Pomme d'Or Hotel, Liberation Square in St Helier, Jersey

Charles and Camilla 'rushed to safety by security' after suspect 'spotted on roof' just days after Trump rally shooting

A highway bridge collapsed in northwest China.

At least 12 people dead and more than 30 missing after China bridge collapses due to flooding

Ray Reardon has died

Snooker legend Ray Reardon dies aged 91 after cancer battle

Steve Baker and Tom Tugendhat

Top Tory reveals why he is backing Tom Tugendhat to 'put the party back together' as leader

The National Lottery site and app is down

National Lottery down as users unable to access site and app day after global IT outage

Thousands of flights were cancelled across the globe on Friday.

Travel misery continues as global IT outage 'could take weeks to clear' - with over 5,000 flights cancelled worldwide

Nadiya Bychkova allegedly made a complaint to Strictly bosses

Strictly pro Nadiya Bychkova breaks silence over 'complaint' amid misconduct scandal

An independent review has recommended teachers and nurses get 5.5% pay rises

Teachers and nurses among millions of public sector workers that should get 5.5% pay rise, ministers told

Tom Tugendhat

Two top Tories back Tom Tugendhat to be next Conservative leader