Today, the ONS published new figures, showing inflation has decreased by 1.4 percentage points to 8.7 per cent.
- Economies around the world are facing high inflation driven by Putin’s illegal war, higher energy prices and economies bouncing back from the pandemic. This means the costs of goods have risen.
- That is why one of Prime Minister Rishi Sunak's five promises is to halve inflation by the end of the year. The ONS confirmed this morning inflation has fallen to 8.7 per cent, showing he is making progress towards his target, but there is more work to do.
- Inflation is the number one enemy that makes everyone poorer, eating away at people’s savings and pay packets. By reducing it we are easing day to day costs as the Conservative Government grows the economy and reduces debt.
The Government is taking action to halve inflation by:
- Reducing inflation to 8.7 per cent today, showing progress on the Government's promise to halve inflation by the end of the year. The rate of inflation is the change in prices for goods and services over time and rises when things get more expensive. Today the ONS confirmed the headline rate of CPI (inflation) stood at 8.7 per cent, a 1.4 per cent decrease, reaching single figures for the first time since August 2022 – meaning the price of goods are lowering.
- Paying half of people’s energy bills over the winter reducing one of the biggest outgoings for families and tackling inflation head on. Putin’s war in Ukraine is driving energy prices up across the globe which, in turn is driving up the rate of inflation and therefore the cost we pay for day-to-day goods. The Government paid half of people’s energy bills this winter, which kept inflation four percentage points lower.
- Freezing fuel duty, holding down the price of fuel for motorists and therefore helping us to reduce inflation. By reducing the cost people pay for their fuel the Government is holding down energy prices and therefore preventing inflation from spiralling. At the Spring Budget 2023, they delivered the thirteenth consecutive freeze to fuel duty, saving motorists £200 since the five pence cut was introduced.
- Maintaining a strong workforce, with unemployment near record lows, whilst delivering a labour market package to get more people into work. The unemployment rate is near record lows, with the number of payrolled employees higher than pre-pandemic levels. This means more people are contributing to the economy, without an unreasonable reliance on the state – allowing the Government to tackle inflation.
- Managing responsible public finances and resisting above-inflation pay rises, allowing the Bank of England to navigate global headwinds such as inflation. The Bank of England welcomed the steps the Government has taken to stabilise public finances, including avoiding agreeing above-inflation pay rises across the public sector – meaning they were able to predict inflation to halve by the end of the year.
- Easing the impacts of inflation immediately with a £94 billion package of cost of living support. Inflation is the number one enemy that makes everyone poorer. As Prime Minister Sunak makes progress to halve the rate of inflation by the end of the year the Government has a £94 billion package of cost of living support in place – an average of £3,300 per household on average. This includes additional payments to vulnerable households.