Inflation has fallen to the Bank of England's 2% target for the first time in nearly three years.
The Consumer Price Index (CPI) fell to 2% in May, according to the Office for National Statistics (ONS), in line with economists expectations.
Inflation has been as high as 11.1% in October 2022, the highest rate in 41 years.
Last month's drop to 2.3% came on the same day as Rishi Sunak called the General Election, surprising politicians across the spectrum.
Mr Sunak will hope today's news gives him a boost in the polls just two weeks out from the election, where a record win for Labour remains a distinct possibility.
He said: "Great news this morning that inflation is back to normal at 2%. That’s lower than Germany, France and America.
"When I became Prime Minister, inflation was at 11%. But we took bold action. We stuck to a clear plan and that’s why the economy has now turned a corner."
Meanwhile, Rachel Reeves, Labour’s shadow chancellor, said: "After 14 years of economic chaos under the Conservatives, working people are worse off. Prices have risen in the shops, mortgage bills are higher and taxes are at a 70-year high.
"The choice at the election is simple: stability with Labour that will make Britain better off or five more years of chaos with the Conservatives that will mean higher mortgages."
No interest rate cut expected
The Bank isn't expected to cut interests rates at its meeting tomorrow, though a reduction in borrowing costs could be a possibility at a meeting in August.
Luke Bartholomew, deputy chief economist at the asset manager abrdn, said: "The fall of headline inflation back to target was expected, but will still come as extremely welcome news to the Bank of England.
"The big question now is whether underlying inflation pressures in the economy are consistent with inflation staying around 2% in the medium term, or whether inflation will start to edge higher again once favourable base effects fade.
"On that front, there is still evidence of residual stickiness in services inflation, reflecting the strength of wage growth recently.
"That is why an interest rate cut tomorrow is still very unlikely. But we think the Bank’s communication tomorrow will set out a path for a cut in August, which is now looking increasingly likely."
Services inflation concern
While the drop in CPI was largely down to falling food prices, according to the ONS, some commentators have expressed concerns that services inflation, which covers sectors such as the hospitality industry, only feel from 5.9% in April to 5.7% in May.
Rob Wood, from Pantheon Macroeconomics, said: "The bad news is services inflation has proved remarkably persistent, slowing only to 5.7% in May from 6.1% in February, a period when large base effects should have weighed heavily on the year-over-year inflation rate.
"We'll need to take a careful look at all the detailed data".
Core inflation, which doesn't include volatile elements like food or energy, fell to 3.5% in line with expectations.
Union's call for action sooner
Meanwhile, Sharon Graham, General Secretary of Unite, called on the Bank to cut interest rates sooner.
"Falling inflation doesn't mean falling prices. The worst cost of living crisis in generations is still dragging on," she said.
"We need action from the Bank of England on Thursday to begin lowering interest rates and relieve the pressure on hard-pressed homeowners."