Inflation finally falls back to its 2% target in major victory for the Bank of England

The rate of inflation has finally fallen back to its 2% target for the first time in almost three years.

Latest data from the Office for National Statistics (ONS) show that the Consumer Prices Index (CPI) the headline measure of inflation, rose by 2.0% in the year to May, down from 2.3% in April. That was in line with City expectations.