Martin Lewis gives interest rate verdict as inflation falls but target 'not hit'

manchestereveningnews.co.uk:

The Prime Minister has celebrated the largest fall in the rate of inflation in 45 years, saying that the rising cost of common goods is "back to normal," but Money Saving Expert Martin Lewis has given his verdict on the figures and says the economic target has "not been hit." This means that despite price increases slowing, the inflation target of two per cent set by the Bank of England, has not been met - dashing the hopes of borrowers that the high cost of loans and mortgages would start to fall.

On X, Martin Lewis said: "CPI inflation for down from 3.2 per cent to 2.3 per cent in April (so prices rose in year to April by 2.3 per cent) This is at the high end of expectations, the Bank of England target has not been hit.

It means an interest rate cut in June is less likely, August more likely." READ MORE: Millions of phone and broadband customers face £276 contract hike this year The CPI inflation figure is a measure of how quickly the cost of common household items and services is increasing, with falling energy prices helping to bring the figure down to its lowest level in years - though consumers still have to live with the inflated prices and lower buying power from years of price rises.

Speaking on Good Morning Britain, Martin Lewis explained the figures: "This is a special day because what we are going to get today is April's inflation, we call it April's inflation but it's inflation for the year to April, so it's a 12-month period of how much prices have changed. "On April 1 we saw the energy price cap drop 12 per cent, thats going to factor into these figures so we know they're coming down. "The target is 2 per cent, so that is a big political moment because for the first time in four years, the government