UK inflation hits target for 1st time in almost 3 years

LONDON, June 19 (KUNA) -- Inflation has hit the Bank of England's target for the first time in almost three years.

Prices rose at 2 percent in the year to May, down from 2.3 percent the month before, BBC reported official figures.
It comes ahead of a Bank of England decision on UK interest rates this Thursday.
The bank is expected to hold the rate at 5.25 percent -- the highest for 16 years -- for the seventh meeting in a row, with markets not betting on a cut until August.
The drop in May's figure was driven by a slowdown in price rises for food and soft drinks, recreation and culture, and furniture and household goods.
However, petrol prices went up sharply.
Inflation hit 11.1 percent - its highest level in over 40 years - in October 2022 as energy and food prices surged due to Russia's invasion of Ukraine.
It sparked a cost of living crisis, leaving millions of households struggling to pay for basics. (end) nbs.gta.