Prime Minister Rishi Sunak received an early Christmas gift yesterday with a surprise slump in inflation, boosting hopes of a tax giveaway in the spring.
Rishi Sunak got an early Christmas gift as inflation fell
Interest rate cuts predicted
Experts are now predicting interest rate cuts starting in May, before a general election. Inflation, the rate at which prices rise, dropped from 4.6 per cent to 3.9 per cent last month, the lowest in two years. This has been hailed as "good news for everyone" by the Prime Minister.
Spring tax giveaway?
The Chancellor, Jeremy Hunt, has suggested that he may cut personal taxes in the next Budget. Money markets are also betting on five interest rate cuts next year, with traders forecasting rates lower than four per cent by next December.
Halving inflation, but still rising prices
While Rishi Sunak has met his self-imposed target of halving inflation, prices are still rising at almost twice the Bank of England's two per cent goal. The Bank governor, Andrew Bailey, has said that there is still some way to go to bring inflation down.
Bringing relief to families
The fall in inflation has been seen as a relief to families who have been feeling the impact of rising costs. Shadow Chancellor Rachel Reeves acknowledged this, stating that the fall will come as a relief to families.
Did you miss our previous article…
https://hellofaread.com/politics/tory-mps-plan-to-block-new-taxes-on-older-boilers-warning-of-soaring-energy-bills/
