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The news will be welcome to U.K. Prime Minister Rishi Sunak and his Chancellor, Jeremy Hunt, who made bringing inflation down to the Bank’s 2 percent target a priority before a general election, expected later this year.
It may also embolden the Bank of England to begin to cut interest rates, which are still at their highest level in over a decade, at 5.25 percent.
U.K. inflation peaked at 11.1 percent in October 2022, the month Sunak took office.