Britain, with its inflation rate measured at 8.7% in May, the highest among developed economies, has sparked discussions about potential revisions to the Bank of England's (BoE) 2% inflation

target. However, Keir Starmer, the leader of the UK's opposition Labour Party, expressed caution and stated that it was premature to outline any changes to the target if his party were to win the upcoming election.

In an interview with the BBC, Starmer emphasized the need to assess the state of the economy closer to the election. He explained that there are several fiscal events scheduled before the election, which would provide a clearer understanding of the economic conditions. Therefore, the discussion on potentially revising the inflation target should be addressed at a more appropriate time.

As the UK continues to face higher inflation rates exceeding the government's set target, the question of whether adjustments to the BoE's mandate are necessary remains a topic of interest and debate. However, Starmer's stance suggests that any decisions regarding the inflation target will be deliberated upon when the economic landscape becomes clearer in the lead-up to the election. Photo by Rwendland, Wikimedia commons.