The annual rate of inflation reached the Bank of England's target of 2.0% in May 2024, according to the House of Commons Library1. The figure marks the end of a period in which the annual rate had reached 11.1% in October 2022, a 41-year high, before easing in subsequent months1.
The fall in headline inflation does not mean prices have returned to their earlier levels. The Library notes that average prices have risen 30% since 20211. On energy specifically, typical household energy bills increased by 54% in April 2022 and 27% in October 2022, and although lower wholesale prices have led to falls, current bills are still 43% above their winter 2021/22 levels1. The Library states that energy prices have fallen since summer 2023 but remain well above pre-crisis levels, with little prospect of large cuts to bills in the near future1.
Government support introduced during the high-inflation period included the Energy Bills Support Scheme, which the Library describes as providing a £400 discount on electricity bills to help households with the rising cost of energy1. The Library also records that the UK imported no coal, oil or gas from Russia in January 2023, with the total value of UK fossil fuel imports from Russia falling since Russia launched its full-scale invasion of Ukraine in 20221.
"The inflation rate reached the Bank of England's target of 2.0% in May 2024."
| Measure | Change |
|---|---|
| Annual inflation, October 2022 | 11.1% (41-year high) |
| Annual inflation, May 2024 | 2.0% |
| Typical household energy bills, April 2022 | +54% |
| Typical household energy bills, October 2022 | +27% |
| Current bills against winter 2021/22 | +43% |
Why it matters for households
Headline inflation measures the rate at which prices are changing, not the level they have reached. A return to the 2.0% target means prices are rising more slowly than in 2022 and 2023, but it does not reverse the increases already built into household budgets. The Library's figure of a 43% gap between current energy bills and winter 2021/22 levels shows that the cost of keeping a home warm and lit remains substantially above where it stood before the energy crisis1.
For a household's energy independence, the practical position is that the price of grid-supplied gas and electricity still carries the effect of the 2022 increases. The Library reports no prospect of large cuts to bills in the near future1. The ending of the Energy Bills Support Scheme's £400 discount, which was a temporary measure, means that support is no longer reducing electricity bills in the way it did when it was introduced1. The Library's finding that the UK imported no coal, oil or gas from Russia in January 2023 indicates a change in the source of supply, but the sources do not report what effect, if any, this had on household bills1.
What happens next
The sources do not set out dated next steps following the May 2024 inflation figure. The Library notes that there is little prospect of large cuts to bills in the near future, but does not give a date or mechanism for any change1. Proposals by the regulator Ofgem for lowering standing charges are referenced in the Library's material, but no timetable is given1.
Sources1 cited
- Cost of living and inflation, commonslibrary.parliament.uk