Inflation has remained at the Bank of England target level for the second consecutive month
The figure was also 2 per cent in the year running up to May, according to figures released on Wednesday by the Office for National Statistics , and is consistent with
The major reason for this is that inflation is measured based on the growth in prices over the past year – so a large part of the figure is based on what prices were 12 months ago. This means that once we reach the second half of 2024, the annual price fall in energy will not be as sharp as it is in current figures, which means it will not have as big a downwards drag on the overall inflation figure as it is currently having.The Bank of England tends to cut interest rates as inflation comes down. At its next meeting, some experts predict that the Bank’s Monetary Policy Committee will cut rates from 5.25 per cent, though things are finely balanced.
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