UK Inflation Hits 2% Target Amid Election Campaigns

The UK's inflation rate has hit the Bank of England's 2% target for the first time in nearly three years, largely driven by a significant drop in energy prices. Despite this milestone, the probability of an interest rate cut is low, with core inflation and services inflation remaining high. Prime Minister Rishi Sunak has highlighted the drop in inflation as proof that the Conservative economic plan is working, although Labour critic Rachel Reeves argues that living standards are still low. Sunak is set to answer questions from voters on an LBC phone-in amid polls showing the Conservatives trailing Labour significantly ahead of the upcoming general election. Labour leader Keir Starmer and SNP leader John Swinney are also actively campaigning, with Starmer avoiding direct answers on potential council tax increases.