Inflation in the UK has fallen to an annual rate of 2% in May, as expected.
It’s down from 2.3% in April, according to the Office for National Statistics.
Core inflation, which excludes food, energy, alcohol and tobacco, as they tend to be volatile, is forecast to have fallen to 3.5% from 3.9%, also as expected.
The largest downward effects came from food and soft drinks, recreation and culture, and furniture and household goods. Transport, namely fuel, provided the largest, partially offsetting, upward contribution.
It is the first time inflation has met the Bank of England’s 2% target since July 2021.
This was mainly because food price rises have eased. Prices of food and soft drinks rose by 1.7% in the year to May, down from 2.9% in April, and the lowest rate since October 2021.
It has eased for 14 months from a peak of 19.2% in March last year, the highest annual rate seen for more than 45 years.
The agenda • 11am BST: Spain Consumer confidence for May • 3pm BST: US National Association of Home Builders’ housing market index for June
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My first piece of advice for Rachel Reeves? Rename the national wealth fund 
Restaurants are dying and the Tories won’t save them. That’s why they won’t get my vote 
