UK Economy: Inflation rate finally drops to 2%

It's taken nearly three years, but the inflation rate has finally fallen back to the Bank of England's target.

It fell to 2% in May, down from 2.3% in April.

But experts are warning that the Bank of England is still likely to hold fire on any interest rate cuts until after the 4th of July, meaning some electoral benefits may bypass the Tories.

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[monir]

Do I feel richer? no as its 2% on top of the 10%

[squirrel]

I think most people don't understand what "falling" inflation means. Falling inflation means that prices are still going up, but not as quickly. All the price rises in the past year or two are not going anywhere.

[derekwarren]

Its still 20% more that it was so unless we go to a period of negative inflation, we are still 20% wore off that we were a few years ago.

[rpperuk]

This headline is an insult....complete insult to working people.

[TobyCostaDunkin]

Prices wont come down. People seem to have a misconception here.

Since the end of the gold standard and even before, inflation devalues money as nothing is backing it anymore. Money is currently the worst store of value, failing one of its core tenents.

So mobe into what our economy is, a debt driven one. Get a loan, buy a house or other assets and work it off. Saving is not financially responsible any more, the soending power will always fall.

[perpetualintellectual]

Blaah blah prices are out of control and the economy isn't growing at all....nobody feels better off

[alfonsohorcajada]

Sunak has done nothing to bring down prices....look at olive oil prices....more than double what used to be a year ago. Nothing is cheaper.

[Theyorkshirepirlo]

It’s all nonsense, the BOE chooses what they want inflation to be. The reality is I can go and buy one carrier bag of food at the supermarket and it costs me £60 now and was £40 a few years ago.

[williemacdonald]

Prices are not coming down, they are just rising more slowly than they did before. Basic economics Ch4 get a grip.

[Womberto]

Why would you feel richer? That's not how inflation works.

[gamingtonight]

If you include rent and mortgage, which is what the inflation basket used to have in it, until the government changed the rules, the inflation rate, (including food shrinkflation) is over 11%!!!

[jasonleung]

Don't forget about shrinkflation too since not only paying more but getting less as well

[eXclusive]

I bought Krispy Kreme’s from Tesco it had a sticker for £6+ for 3 I went to the till and it was £7+ then went Nando’s and my usual meal was 14 now its 17. No we’re not richer you fools.

[okunrin]

The UK PM wearing the French State owned UK energy company is laughable.
We sold our energy infrastructure and the French bought it. Now they are making profit and subsiding the French at our expense.
Rishi just can’t win.

[markandrews]

Leisure / fishing market is completely dead. I buy, refurb and sell small boats and outboard engines. Back in 2018 I was selling one to two small boats a day and an outboard engine too. Fast forward to the last 3 summers and trade is almost non-existent. Now I'm lucky if I can sell one small boat every 2-3 weeks. Nobody has got any money despite the interest rate dropping and petrol and diesel prices significantly reducing. I never ever dreamed business would get this bad in this country. TBH i'm so sick of all of it now I just want to leave the UK and go abroad. Almost anywhere else has to be better than this.

[joshflugel]

Inflation is not falling it is only continues to rise at a slower rate than before, according to doctored statistics. The reality is how much money you got left, or in debt, after visiting the pump, the supermarket and paying the bills.

[lukek]

Hit the target but not reduce rates, so a complete contradiction not fit for purpose, complete overhaul fast.

[Tommy-gmuo]

I don't like Sunak but it wasn't his policy to increase interest rates, that was the Bank of England who are independent from the government.

[canalboating]

So the already high prices that have risen really really fast are now still going up but slower great plan wishi, how is the stop the boats target

[TheKlink]

Falling to 2% means it was higher than that, so I'm literally more than 2% poorer, of course I don't feel richer