In a recent report by the Office for National Statistics, U.K. inflation reached the Bank of England's target of 2.0% in May, with a decline from 2.3% in April. Services inflation, which is vital to the U.K. economy, was at 5.7% compared to 5.9% in the previous month. Core inflation, excluding certain items, also dropped to 3.5% from 3.9% in April. The decrease in inflation was primarily driven by falling food prices, while car fuel costs continued to rise. Unfavorable weather conditions led to the slowest increase in grocery sales in two years, according to Kantar research. Despite these fluctuations, sterling saw a slight increase following the news, reaching $1.2721. As the U.K. heads into national elections in July, these economic indicators will play a crucial role in shaping voter sentiments and political decisions.