Chancellor Rachel Reeves has highlighted falling inflation and a stabilising economic outlook in her Spring Statement, as the Office for Budget Responsibility (OBR) forecasts inflation returning to target within two years.
There have been three interest rate cuts since the general election, following a period in which inflation peaked at 11%.
According to the OBR, inflation is expected to average 3.2% in 2025, fall to 2.1% in 2026, and meet the Bank of England’s 2% target from 2027 onwards.
Reeves said this “gives families and businesses the security they need, [while] providing our economy with the stable platform it needs to grow.”
The UK economy is forecast to grow by 1% this year.
