19 Jun 2024
Data published by the Office for National Statistics (ONS) has revealed that the UK inflation rate has fallen to its lowest level in almost three years.
According to the data, prices rose by 2% in the year to May, down from 2.3% in April.
The ONS data showed that whilst prices are still rising, they're increasing at their slowest pace since July 2021.
The latest inflation data comes ahead of a Bank of England interest rate decision due on Thursday. Many experts expect the Bank to hold interest rates at their current level of 5.25%.
Responding to the data, David Bharier, Head of Research at the British Chambers of Commerce (BCC), said: 'Today's data showing CPI easing to the Bank of England's 2% target, is a further sign that the UK is exiting the inflation crisis which began in late 2020. It provides additional weight for an interest rate cut in the coming months, something which will be welcomed by firms of all shapes and sizes.
'Our research has shown that a steadily declining number of businesses are concerned about inflation, from a record peak of 84% in mid 2022. This is positive news, but prices are not falling, just rising more slowly, and the economic outlook remains challenging.'