Inflation drops for the first time in three years

The Bank of England has announced that inflation has reached its target of 2% for the first time in almost three years.

Official figures reveal that prices rose by 2% in the year leading up to May, a decrease from the 2.3% recorded in April.

This announcement comes at a crucial time as the UK approaches its general election on July 4th. The economy remains a central issue, with all major parties presenting their strategies to manage the cost of living.

Derek Mackenzie, CEO of Investigo, part of The IN Group, commented: “It’s not been an easy time for business over the past few years, navigating a turbulent market restricted by high inflation. Concerns over the economy have had a significant impact on businesses, limiting spending and resulting in cuts in key areas such as technology, which has prevented growth. In fact, half of boardroom leaders admitted to slashing their tech budgets over the past year alone, according to our Tech and the Boardroom research.

“Now that inflation is back on target, it is essential for the boardroom to invest in technology to drive digital transformation, boost efficiency and fuel growth. Tech development is so fast-moving, as seen by the rise of AI, and the boardroom can’t afford to wait otherwise they risk being left behind.”

Khalid Talukder, Co-Founder of DKK Partners, commented: “Sky-high inflation has caused a major headache for businesses over the past few years, undermining confidence in the economy and limiting investment. Now that inflation is back at the target level, the challenge for the incoming government and Bank of England is to keep it there. If they are able to do that, business confidence will soar, promoting innovation and investment across the economy and helping business leaders to make long-term decisions such as international expansion into new emerging markets, which will in-turn foster international collaboration and further boost economic growth.”