Rishi Sunak has finally awoken to some good news – inflation for the year until June was 7.9%. This represents a drop of 0.8% on the previous month, which is more than economists had expected. Core inflation, which last month rose to a thirty-year high, also fell – it now sits at 6.9%. The drop was largely caused by falling fuel prices, as food prices increased by far less than they did in June 2022. Jeremy Hunt commented on the figures to Sky News:
“It’s obviously welcome news that inflation has fallen. And it shows that if the government and the Bank of England are prepared to take difficult decisions, we can win the battle against inflation. But nonetheless, for families up and down the country prices are still rising much too fast – there’s a long way to go. If we look at inflation at 3% in the US, 5.5% in the Eurozone, you can see that if we stick to the plan, we can bring down inflation.”
All eyes are now on the Bank of England…
With figures falling fast, Rishi’s first pledge does look more achievable. Inflation was at 10.1% when he made his promise, meaning he still has to get it down by another 2.9%. Six months to go.