Inflation in the UK has hit its 2% target for the first time in three years, a positive note for Prime Minister Rishi Sunak amid his election campaign. This milestone follows a significant inflation surge, with the last target met in July 2021. Despite this, higher-than-expected service prices have tempered investor optimism, reducing the likelihood of an imminent interest rate cut. May’s consumer price inflation dropped from April’s 2.3%, but services inflation and core inflation remain high, suggesting persistent underlying inflation pressures. Economists warn that inflation may rise again later this year as the effects of falling energy prices diminish.