- 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 the five key Conservative 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 we are making progress towards our 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 the impact of day to day costs on people's pockets as we grow the economy and reduce debt.
- Reducing inflation to 8.7 per cent today, showing progress on our 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.
- 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. We paid half of people’s energy bills this winter, which kept inflation four percentage points lower.
- By reducing the cost people pay for their fuel we are holding down energy prices and therefore preventing inflation from spiralling - the rise in the cost of energy is the single biggest driver of the rise in the cost of food. At the Spring Budget 2023, we delivered the thirteenth consecutive freeze to fuel duty, saving motorists £200 since the five pence cut was introduced.