London | British inflation returned to its 2 per cent target in May for the first time in nearly three years, data showed on Wednesday, but underlying price pressures remained strong, meaning the Bank of England is likely to wait longer before cutting interest rates.

While the fall in headline inflation in May will be welcomed by both Prime Minister Rishi Sunak and the BoE, it is likely to have come too late either to turn around Mr Sunak’s fortunes at next month’s election or to prompt a BoE rate cut on Thursday.

Reuters