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GOING DOWN

Rishi Sunak hails hitting “number one priority” to halve inflation by the end of the year

British Prime Minister Rishi Sunak speaks as he holds a Cabinet meeting inside 10 Downing Street in London, Nov. 14, 2023. Kin Cheung/Pool via REUTERS

RISHI Sunak has hit his inflation target today in a major boost for struggling households as it fell to 4.6 per cent.

The rate fell below 5 per cent for the first time in two years delivering on a key Downing Street promise.

Rishi Sunak hits his inflation target - one of his five key peldges
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Rishi Sunak hits his inflation target - one of his five key peldgesCredit: Reuters

The Prime Minister said at the beginning of the year the rate would halve by the end of 2023 when it was running at  10.7 per cent.

Mr Sunak said: "Inflation works like a tax. It eats into the pound in your pocket, affecting the price of your food shop, your mortgage, the size of your pension pot.

"This is why halving inflation has been my number one priority. Getting it down has involved hard decisions and fiscal discipline."

The figures mark the rate of inflation for the year to October after hitting a peak of 11.1 per cent.

Inflation is a measure of how the price of goods and services has changed over the past year.

It will be a major relief in Downing Street to make on of his five pledges - which also include stopping illegal boat crossings across the Channel and cut NHS wait times.

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A slowdown in gas and electricity inflation helped see the rate of inflation for October drop helping families amid the cost of living crisis.

Energy prices were capped at £2,500 last year for the typical household but this now stands at £1,834.

The government has set the Bank of England a target of bringing inflation down to 2 per cent with interest rates - currently at 5.25 per cent -  used to control spiralling prices.

But Shadow Chancellor Rachel Reeves today said:  "The fall in inflation will come as some relief for families struggling with the cost of living. But, now is not the time for Conservative ministers to be popping champagne corks and patting themselves on the back.

 “After thirteen years of economic failure under the Conservatives, working people are worse off with higher mortgage bills, prices still rising in the shops and inflation twice as high as the Bank of England’s target."

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