Struggling Households Get a Boost

Rishi Sunak, the Chancellor of the Exchequer, has achieved his goal of halving inflation by the end of the year, providing a significant boost for struggling households. The inflation rate has dropped to 4.6%, falling below 5% for the first time in two years and fulfilling a key promise from Downing Street.

A Major Priority

Addressing the importance of tackling inflation, Sunak stated, "Inflation works like a tax. It eats into the pound in your pocket, affecting the price of your food shop, your mortgage, the size of your pension pot. This is why halving inflation has been my number one priority. Getting it down has involved hard decisions and fiscal discipline."

Progress Made

The latest figures reflect the inflation rate for the year up to October, which peaked at 11.1%. Achieving a significant decrease in inflation will come as a major relief for the government, as it marks progress towards fulfilling Sunak's five pledges, including reducing illegal boat crossings across the Channel and cutting NHS wait times.

Factors Influencing the Drop

A slowdown in gas and electricity inflation has contributed to the decrease in the October inflation rate. This development will provide much-needed relief for families grappling with the cost of living crisis. Energy prices, which were capped at £2,500 for the typical household last year, have now dropped to £1,834.

Bank of England Target

The government has set a target for the Bank of England to bring inflation down to 2%. Currently, interest rates are at 5.25% and are used as a tool to control rising prices. The successful decrease in inflation brings the country closer to achieving this target.

Opposition's Response

Shadow Chancellor Rachel Reeves acknowledged that the fall in inflation provides some relief for families struggling with the cost of living. However, she emphasized that the Conservatives' economic track record over the past thirteen years has left working people worse off, with higher mortgage bills and prices still on the rise.