UK inflation rate falls to lowest level in almost three years

Business / Wed 19th Jun 2024 at 06:26am

UK inflation fell to 2% in the year to May, official figures show reports the BBC.

It marks a fall from 2.3% in April, according to the Office for National Statistics, and means that inflation has fallen back to the Bank of England’s 2% target for the first time in nearly three years.

The Consumer Price Index – which tracks how the price of a typical basket of items changes over time – rose by 2% in the 12 months to May 2024 – which is down from the 2.3% in the 12 months to April. 

It means prices are still rising but at a slower rate than previously. 

According to the ONS, the largest downward contribution to the monthly change in annual rates came from food. (Last month, falling gas and electricity prices were cited as a big part of the reason behind the sharp fall in April’s inflation number.)

Core inflation – which excludes energy, food, alcohol and tobacco – rose by 3.5% in the 12 months to May 2024, which is down from 3.9% in April.

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7 Comments for UK inflation rate falls to lowest level in almost three years:

James Gamble
2024-06-19 09:43:27

Inflation can only rise so far then it has to fall. What we have witnessed is one of the steepest rises in Inflation, certainly in my life time. I remember when we had negative equity which followed a huge hype in house prices. Prices balance themselves out eventually as people can only afford to pay so much. In my opinion we should balance out Inflation by linking wages to the Inflation rate.

David Forman
2024-06-19 22:52:10

Nice to see inflation coming down. It's not just Ukraine war, but also the economic damage of Covid-19 and the vast amount of quantitative easing issued by the Bank of England causing inflation. It is also true to say that most of this was outside the Government's control, if we leave the Liz Truss fiasco aside as an icing on the cake moment. It is also fair to say the Government issued funds to help with the cost of living. However, the many people suffering won't see through the economic niceties sufficiently to do anything other than blame the Tories on whose watch it went pear shaped.

James Gamble
2024-06-20 08:57:19

Just as the Tories blamed Labour for the 2008 worldwide financial crash, David. 14 years of bad policies such as austerity, the bad handling of Covid ie. giving lucrative contacts to family and friends who did not deliver or delivered unsuitable PPE. We should have known from the start when Cameron said Labour was scaremongering in suggesting a Tory Government would increase VAT. Within 6 months they did exactly that and traised student fees as well. Then they promised to 'Get it done' with Brexit but not all of the UK has left the EU. They promised new hospitals and millions of affordable housing along with leveling up, all of which they have failed miserably to do.

2024-06-20 19:12:04

David , the Ukraine war started in 2014 did it not? Despite this our govt did nothing in anticipation of a bigger conflict. Likewise with Covid in 2020, there was no apparent planning for a pandemic like having a supply chain in place for PPE.

2024-06-21 16:20:49

James , what part of the UK, have not left the EU?

James Gamble
2024-06-22 10:03:09

Turkey Northern Ireland. Pete every company in the UK are required to have a disaster plan in place but the Tory Government failed to produce one.

2024-06-23 05:05:19

James. NI left the EU with the rest of the UK. But EU/UK rules state NI can still have free movement of goods .

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