British economy grew by 0.7% in Q1, higher than expected

Official figures showed on Friday that the British economy grew by 0.7% in the first three months of this year compared to the previous quarter. This is higher than initial estimates of growth of 0.6%.

Inflation in Britain returned to the target rate of 2% in May for the first time in about 3 years, with the economic impact of the Covid-19 pandemic and the Ukraine war on the country fading.

Annual consumer price inflation falling below 2.3% in the April data is in line with the average forecast of economists polled by Reuters and represents a sharp decline from the 41-year high of 11.1% recorded in October 2022.

The Bank of England said that the return of inflation to the target rate is not enough in itself for it to start cutting interest rates.