Inflation has hit the Bank of England’s target for the first time in almost three years.
Prices rose at 2% in the year to May, down from 2.3% the month before, official figures show.
The economy is a key talking point in the run-up to the general election on 4 July, with all of the main parties battling over how they would keep the cost of living under control.
The Conservatives said their “difficult decisions” were paying off, but Labour said pressures on family finances were “still acute”.
The drop in May’s inflation figure was driven by a slight fall in prices for food and soft drinks, and slower price rises for recreation and culture and furniture and household goods.
Prices for bread, cereals, vegetables, sugar, jam and chocolate all fell between April and May this year compared with a year ago.
However, food prices overall are still 25% higher than at the beginning of 2022.
Petrol prices also increased, rising by 0.7p per litre between April and May while diesel prices fell by 0.8p per litre.
The inflation figure comes ahead of the Bank of England’s latest decision on UK interest rates this Thursday.
The Bank is expected to hold the rate at 5.25% – a 16-year high – for the seventh meeting in a row.
Markets have now also cut bets that the Bank of England will slash rates at its next opportunity in August. That is because price rises in the services sector remain high at 5.7% in the 12 months to May.
