November 15th 2023.
Today's report from the Office for National Statistics is optimistic news for the government, with inflation falling to its lowest rate in two years. According to the report, consumer prices rose 4.6% in the year through October, decelerating from the previous month of 6.7%.
The agency noted that three major divisions were responsible for the decrease. Housing and household services, food and non-alcoholic beverages, and restaurants and hotels had large downward effects. The only large positive contribution came from recreation and culture.
Inflation is an overall increase in prices, meaning your pound coin won't stretch as far in the future. To measure this, the Consumer Price Index looks at the annual change in prices of everyday items, such as furniture, food, and transportation. To reduce inflation, the Bank of England has increased interest rates, making borrowing more expensive.
Today's report shows that inflation is running at a much slower pace than last year, when it spiked to 11.1%, or even in early 2021. This is a major win for Prime Minister Rishi Sunak, who in January made it his priority to halve inflation by the end of the year. He has now achieved this goal.
However, experts caution that the road to finally wrangling inflation is still a long and bumpy one. Ben Harrison, director of the Work Foundation think-tank at Lancaster University, said that while the government is encouraged by the decrease, workers in insecure and low-paid jobs are still feeling significant cost of living pressures.
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