Inflation has fallen back to the Bank of England’s 2pc target for the first time in nearly three years, official figures show, in a boost to Rishi Sunak’s election campaign.

The consumer prices index (CPI) fell to 2pc in May, according to the Office for National Statistics, which was down from 2.3pc in April and in line with economist expectations.

It marks the first time inflation has been at the Bank of England’s target since July 2021, before the cost-of-living crisis saw inflation shoot up to as high as 11.1pc in October 2022 - which was its highest in 41 years.  

It will also be claimed as a victory by the Prime Minister, who has built his election campaign on his economic credentials.

The Bank of England is not expected to begin cutting interest rates at its next meeting tomorrow but the latest data will likely be a boost/blow to hopes of a reduction in borrowing costs at its next meeting in August.

Core inflation, which strips out volatile food and energy prices, fell to 3.5pc, which was as economists had expected.

Services inflation, which has been highlighted as a potential hurdle to interest rate cuts, fell to 5.7pc from 5.9pc in April, which was higher than forecasts of 5.5pc.

Read the latest updates below.