Good News for Households
The UK inflation rate has fallen once again, providing a welcome relief for millions of households. According to the Office for National Statistics (ONS), the annual rate at which prices rise dropped to 3.9% in October, down from 4.6% the previous month. This decline follows a peak of 11.1% in October of last year.
Promising Signs
This decrease in inflation will be particularly beneficial for households, as it means that the cost of everyday essentials will rise at a slower pace. The Bank of England's decision to keep its base rate unchanged at 5.25% last week further supports this positive trend.
Government's Commitment
These latest figures demonstrate that Prime Minister Rishi Sunak is making progress in fulfilling his promise to halve inflation by the end of 2023. Chancellor of the exchequer Jeremy Hunt emphasized the importance of this achievement, stating that it helps remove inflationary pressures from the economy and sets the stage for sustainable growth.
Factors Behind the Decline
The ONS attributes the slowing of inflation to a decrease in the price of fuel, food, and household goods. Additionally, the cost of raw materials fell by 2.6% in November, while the cost of factory goods decreased by 0.2%.
Relief for Struggling Households
While many households continue to face financial challenges, the news of inflation falling beyond expectations brings a glimmer of hope. Dean Butler, managing director for Retail Direct at Standard Life, believes that this downward trend could lead to the Bank of England lowering the base interest rate next year. This would provide much-needed relief for those with mortgages or unsecured debt, such as payday loans or credit cards.
Overall, the latest figures indicate a positive direction for the UK economy, with inflation on a downward trajectory. This development is sure to bring solace to households across the country.
Did you miss our previous article…
https://hellofaread.com/money/developers-clash-with-michael-gove-over-housing-reforms/
