The research firm, Kanter found that inflation has fallen to 2.3% which is a drop from 3.2% in April.

This announcement is encouraging to hear and brings hope that the UK is on the right track as this is the lowest level in three years.

Shoppers are still opting for own-brand labels rather than branded products in the supermarkets. Own-label is out performing brands and makes up 52% of total spending. People are saving their money each week and choosing cheaper options.

The energy price cap set to £1690 in April which was a £238 drop has been described as a key reason for the drop in inflation figures.



With inflation falling and the hope that this continues the bank of England could cut mortgage rates from their current hold at 5.25%.

Economists believe the rates could be cut to 4.75% or 4.5% by the end of 2024 and then cut to 3.5% by the end of 2025. This would be closer to their goal of 2%.

The Euros and the Olympics held in the summer this year are expected to create a rise in shopping especially in the purchasing of alcoholic drinks.


Government borrowing

The government borrowed £20.5bn in April which is £1.2bn over the Office for Budget Responsibility. During the pandemic and due to the Russian invasion in Ukraine it has been necessary to borrow money to support the economy and help the public through these times says The Treasury.



Inflation is slowing down gradually which means prices are not increasing as much. With this trend continuing and now the UK is officially out of the recession the public is spending more and boosting the economy allowing prices to slowdown.