New figures show the rate of inflation is at 3.9 per cent and is at its lowest point since 2021.
- The world has been grappling with high inflation, caused by the pandemic and Putin’s weaponisation of energy – which is why the Prime Minister made it his top priority to halve inflation.
- Having met his promise to halve inflation, the latest available figures show the rate of inflation was 3.9 per cent in October and is now at its lowest point since 2021. Whilst there is more to do this will give families the immediate relief they need – especially helping to ease people’s mortgage costs.
- Whilst Rishi Sunak's Government took the difficult decisions to hold inflation down, Labour’s plans would lead to higher inflation for longer, with their £28 billion spending plan, risking higher taxes and higher mortgages.
Conservatives are easing pressures on households and helping with the cost of living by meeting our promise to the British people to halve the rate of inflation, and keeping it low, easing pressures on families. New figures show the rate of inflation is at 3.9 per cent down from 4.6 per cent the previous month, and down from over eleven per cent at its peak. This means people’s money goes further each month, we will continue to take the long-term action to keep inflation down.
The Government is holding inflation down by:
- Resisting calls for additional borrowing and spending that would fuel inflation further, taking the long-term decisions for the economy. They took the difficult decisions to control public spending when inflation was at its peak – this included resisting pressure to fund above-inflation public sector pay settlements, despite Labour arguing for them (HM Treasury, Spring Budget, 15 March 2023, link).
- Introducing ambitious measures to help people back into work, addressing the tight labour market – one of the main domestic drivers of inflation. The UK’s tight labour market leaves us exposed to inflationary pressures – this means the Government had to ensure employment remained high. Jeremy Hunt delivered a package of reforms at the Spring Budget and the Autumn Statement, including uncapping pensions and expanding childcare, to do this (HM Treasury, Spring Budget, 15 March 2023, link; HM Treasury, Autumn Statement 2023, 22 November 2023, link).
- Holding down energy prices, one of the main drivers of inflation, combatting Putin’s weaponisation of Europe’s energy supply. The Energy Price Guarantee held down inflation by 2.6 percentage points, whilst the Energy Bill Relief Scheme lowered headline inflation and the separate Energy Price Cap had a significant impact on the July inflation figures, reducing CPI inflation by 0.97 percentage points (HM Treasury, Spring Budget, 15 March 2023, link).
- Delivering a package at the Autumn Statement that ensures inflation will fall right across the forecast period, taking the long-term decisions to strengthen the economy. The OBR confirmed the measures the Conservatives took at the Autumn Statement will continue to ensure inflation lowers over the forecast period, meaning they have taken the difficult decisions to offer families long-term relief and to strengthen the economy (HM Treasury, Autumn Statement 2023, 22 November 2023, link).