On 21 May 2025, the Office for National Statistics (ONS) published data showing that twelve-month inflation in the Consumer Prices Index (CPI) was 3.5% in April. On 18 June, the ONS published data showing that CPI inflation was 3.4% in May. This letter sets out the outlook for inflation and the policy action the Monetary Policy Committee (MPC) is taking to return inflation to the 2% target, along with other considerations required by the MPC’s remit when inflation moves away from the 2% target by more than 1 percentage point. Why has inflation moved away from the 2% target? Consumer price inflation has fallen ... (full story)