The figures will allow Sunak to declare victory over a brutal cost-of-living squeeze after inflation topped 11% in late 2022 when war in Ukraine and the end of pandemic restrictions sent prices spiraling. Still, that’s unlikely to be enough to help the ruling Conservative Party, which polls show is heading for defeat in July 4 election.
British inflation fell back to the Bank of England’s 2% target for the first time in almost three years, a milestone that likely comes too late to improve the political fortunes of Prime Minister Rishi Sunak before the looming election.
The Consumer Prices Index eased in May from 2.3% the month before, the Office for National Statistics said on Wednesday. While that should keep the central bank on track for interest-rate cuts later this year, services inflation remained sticky, which is likely to keep policymakers cautious about acting.
