Sunak is now fielding a question about Tory donor Nick Hester, who made alleged racist comments about former Labour MP Diane Abbott. Hester has apologised for his comments, which were allegedly made at his company's headquarters in Leeds in 2019. More on that story here.

"If people are genuinely contrite and apologise, that should be accepted," Sunak says.

The prime minster previously described Hester's comments as "racist" and "wrong".

When pressed by Ferrari if he would return the money from Hester, the prime minister maintained his previously held line, which is that the man had shown remorse and he accepted his apology.

Sunak is now being asked about the challenge Nigel Farage's Reform UK party is posing to the Tory campaign.

An average of recent polls suggests Reform is now the third most popular party - behind the Tories and Labour, which is some 20 points ahead.

Sunak responds by saying there are only two choices for prime minister in this election - him or Keir Starmer.

He also tries to direct the focus of the conversation onto repeated promises to cut taxes if elected.

Host Ferrari returns his focus to the Farage question: Would you welcome him into the Tory fold in the coming years?

"I'm focused on winning this election," Sunak says.

• Use our interactive poll tracker to check the latest trends measuring how people say they intend to vote

One of the first callers on the LBC phone-in asks Rishi Sunak if he would happily commit to serving as a backbencher in the event he loses the general election.

The prime minister laughs and says he's focused on winning the election and talking to people around the country.

Ferrari then presses the listener's question a bit further - and asks Sunak directly if he will serve his full term if elected.

Yes, Sunak says, before diverting attention back to why he's here which is to "serve people". He reiterates his pledge to cut taxes.

Image source, LBC

Before getting into listeners' questions, the first one put to Rishi Sunak comes from LBC host Nick Ferrari.

How does the prime minister feel about the latest CPI inflation figures - which are 2% for the 12 months to May, down from 2.3% in April?

The prime minister says the last few years have been "tough for everybody" but his government "stuck to a plan".

"It wasn't always easy, but we've got there", he tells Ferrari.

We're now going to turn our attention to LBC, where callers on Nick Ferrari's Breakfast show are putting questions to Prime Minister Rishi Sunak.

We'll be following along closely and bringing you all the key moments from the programme, so stick with us.

The Lib Dems have also been reacting to today's inflation announcement, with the party's Treasury spokeswoman saying "the hard truth is that millions of people won't be feeling any better off today, thanks to years of Conservative economic mismanagement".

"Rishi Sunak's boasts will ring hollow to countless families seeing their mortgages skyrocket and agonising rises in shopping prices compared to just a few years ago," Sarah Olney says in a statement.

"It is sheer desperation from the Conservatives to claim their plan for the economy is working, when they have presided over the worst cost of living crisis in a generation."

The last question for Stride is about Chancellor of the Exchequer Jeremy Hunt and his whereabouts today.

"Has he been silenced, given he's hardly been seen at all?" the BBC asks.

It's put to him that Hunt posted on X about the terrible phone reception in certain constituencies but nothing about the economy after the latest inflation figures were announced in the last hour.

Stride laughs and says, "not at all" on the question on whether he's been silenced and notes that Hunt, like himself, is out knocking on doors and speaking to people - like they've been doing every day.

Stride is now being asked for his response to comments made by businessman John Caudwell - the billionaire Phones 4U founder and former Tory donator who is now backing the Labour Party.

If you are losing the support of business, how are you going to get the support of the country as a whole?

Stride replies by saying there are many things the Conservative Party is doing to boost jobs and growth in the economy.

And in an attack on Labour, he says: "Labour are going to bring in French-style labour laws that are going to slow business down, they are going to increase taxes and they won't even tell us where those tax rises are going to come from."

Stride is then asked if his government would also take responsibility for an expected rise in inflation over the next few months, given that it has taken credit for the recent fall to 2%.

He says we are now "back to more normal times" as the spike of inflationary pressure because of the Russia-Ukraine war has "worked its way through the system".

He says it's not unreasonable to say that it's more the "preserve of the government" than when an "external shock arrived".

The Liz Truss mini budget is then brought up, which Stride says was not inflationary in its nature and, he emphasises, he did not endorse "the way she went about that".

Secretary of State for Work and Pensions, Mel Stride, is now being interviewed on BBC Breakfast.

It's put to him that people will still be feeling the pinch given prices are still rising, following the release of the latest inflation figure for May this morning.

"This is the same for every country that has been affected by a surge in prices because of war in Europe," he says.

He says inflation is now in line with the prime minister's commitment (to halve inflation by the end of 2023) and the Bank of England's target and will make a difference to how people feel about the cost of living crisis. It does not solve the problem, he says, but it is an important moment.

He says it is a combination of monetary policy (driven by the Bank of England) and fiscal policy (from the government) that has achieved this result, noting that the government did not give in to "high wage demands" which could drive inflation.

The last question for Reeves is about her party suspending candidate Andy Brown after reports he shared "pro-Russian" material online.

She says she doesn't know the candidate, but the suspension shows that “the Labour Party has changed” and is willing to take swift action.

“We're not going to stand by people who are sharing pro-Russian sentiment. That's not Labour values," she says.

Her interview ends as we're just minutes away from hearing from Work and Pensions Secretary Mel Stride, who will likely provide some fresh analysis to today's inflation figures as well. Stay with us.

What does it mean when Labour says it will grow the economy? That's the next question put to the shadow chancellor - just minutes after it was announced that inflation fell to 2% in the year to May.

She explains the main mission is to have the fastest economic growth in the G7 - and this means higher earnings for ordinary people and decent jobs.

Reeves adds that her party plans to achieve this through stability, investment and reform, and that this would help us break out of the low growth and high taxes “doom loop”.

How would the shadow chancellor deliver on Labour's economic plan if her party wins the 4 July poll? Reeves is then asked.

She's asked to respond to a report from the Institute for Fiscal Studies - and independent think tank - which says Labour offers no plan for where financing is coming from.

Reeves responds by saying it's not about new money - but she notes Labour has put forward investment adding that the UK needs to create conditions for better investment.

Reeves is next asked how she would keep inflation low if she were to be made chancellor if Labour is elected.

She says the economy needs stability, adding that she would introduce tough spending rules, before going on to vow to "never" put forward plans without saying where the money came from.

“I’ll never play fast and loose with public finances,” she says.

Let's return to the morning media rounds. Labour's Rachel Reeves is now speaking to BBC Breakfast.

The shadow chancellor says she welcomes the news that inflation is at 2% (for the 12 months to May) - but adds that she is not going to say "everything is fine".

For many people, the cost of living crisis is still acute and very real, she says

It is putting big pressure on people's finances, and the choice at this election was "five more years of chaos under the Tories" or a Labour Party which has a "real plan for growth".

Little expectation of interest rate cut tomorrowpublished at 07:19 British Summer Time 19 June

07:19 BST 19 June

Faisal Islam
Economics editor

Food prices are still 25% higher than at the beginning of 2022. Petrol prices are now on way up again.

The underlying figures for services inflation and core inflation are what really matter, for the wider economy. They show how entrenched inflation remains, even as the headline rate falls.

While they are lower than in April, at 3.5% for core and 5.7% for services, inflation still remains sticky.

They did disappoint last month, staying high and actually suggested that an interest rate cut tomorrow from the Bank of England was unlikely.

It remains the case that there is little expectation of a rate cut from the bank tomorrow. But the overall figures could help signal whether a rate cut might still happen in early August.

Inflation rate back to Bank of England’s target for first time since July 2021published at 07:14 British Summer Time 19 June

07:14 BST 19 June

Faisal Islam
Economics editor

It was only a month ago that the prime minister called a general election on the day that April’s inflation figures showed a continued decline closer to target.

This set of figures, for May, shows the headline rate of inflation back at 2%, the Bank of England’s exact target for the first time since July 2021. UK inflation is now below most of the rest of the G7 advanced economies, apart from Italy.

The figures are sure to spark a significant debate among the main parties over what will be the last big official economic statistics of the campaign.

The Conservatives will hope the figures can help its story of an economic turnaround. Labour will continue to press concerns about an ongoing cost of living crisis.

Image source, .

Let's pore over some of the figures released by the Office of National Statistics just now.

The Consumer Price Index - which tracks how the price of a typical basket of items changes over time - rose by 2% in the 12 months to May 2024 - which is down from the 2.3% in the 12 months to April.

It means prices are still rising but at a slower rate than previously.

According to the ONS, the largest downward contribution to the monthly change in annual rates came from food. (Last month, falling gas and electricity prices were cited as a big part of the reason behind the sharp fall in April's inflation number.)

Core inflation - which excludes energy, food, alcohol and tobacco - rose by 3.5% in the 12 months to May 2024, which is down from 3.9% in April.

Image source, .

UK inflation fell to 2% in the year to May, official figures show.

It marks a fall from 2.3% in April, according to the Office for National Statistics, and means that inflation has fallen back to the Bank of England's 2% target for the first time in nearly three years.

Stay with us as we dig into the figures and latest analysis.

The government has set the Bank of England a Consumer Prices Index (CPI) inflation target of 2%, which the Bank says helps everyone plan for the future.

If inflation is too high or fluctuates, the Bank says it is hard for business to set the right prices and for people to plan their spending.

But if inflation is too low, or negative, then some people may put off spending because they expect prices to fall, the Bank adds.

If the 2% target is missed by more than one percentage point, the governor of the Bank of England - currently Andrew Bailey - must write a letter to the chancellor to explain why.

• Read more about inflation and how it impacts you here