Inflation is finally back at 2% in the UK. Here's why rate cuts are still ‘off the table'

UK inflation slowed to 2% in May, reaching the Bank of England’s target for the first time in almost three years as food price rises eased. This puts the UK ahead of most other G7 economies in managing inflation. However, services prices are still rising too fast, which suggests that the Bank of England may not follow the European Central Bank in cutting interest rates. The possibility of a rate cut in August is also less likely. Persistently high living costs continue to be a concern for voters in the upcoming elections.