Rate Falls Below 5% for the First Time in Two Years
Rishi Sunak has successfully hit his inflation target, providing a major boost to struggling households as the rate fell to 4.6 per cent. This accomplishment fulfills a key promise made by Downing Street.
Prime Minister's Pledge Delivered
At the beginning of the year, Prime Minister Sunak stated that the rate would be halved by the end of 2023, when it stood at 10.7 per cent. Today's drop below 5 per cent marks a significant milestone in achieving this goal.
Halving Inflation: Sunak's Top Priority
Mr. Sunak emphasized the importance of tackling inflation, stating that it works like a tax and erodes the value of people's money. Lowering inflation has been his number one priority, requiring difficult decisions and fiscal discipline.
Positive Figures Reflecting a Year of Progress
The latest figures represent the inflation rate for the year up to October, following a peak of 11.1 per cent. Inflation measures the change in prices of goods and services over the past year.
Relief for Struggling Families
The decrease in gas and electricity inflation contributed to the drop in the October inflation rate, providing much-needed relief for families grappling with the cost of living crisis. Energy prices, which were capped at £2,500 last year, now stand at £1,834 for the typical household.
Government's Target and Interventions
The government has set a target for the Bank of England to bring inflation down to 2 per cent. Currently, interest rates are at 5.25 per cent and are used to control rising prices.
Opposition's Response
Shadow Chancellor Rachel Reeves acknowledged the fall in inflation as a relief for struggling families. However, she criticized Conservative ministers, stating that despite this progress, working people are still worse off with higher mortgage bills and prices continuing to rise.
