DAILY MAIL COMMENT: Inflation fall shows Tory plan is working trends now
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Rishi Sunak keeps telling us the economy has turned the corner. Might he be right?
The sharp fall in inflation to 3.4 per cent – its lowest level for two and a half years – is good news for everyone.
It brings much-needed relief for families struggling with rising food and energy prices – and for a beleaguered Prime Minister in deep political trouble.
Considering inflation was an eye-watering 10.6 per cent just over a year ago, this is a major achievement. Experts now predict it is on track to hit the Bank of England's 2 per cent target next month.
Global factors such as easing energy prices are the main reason. But by resisting ludicrous public sector pay demands, ministers have helped. Sensibly, Chancellor Jeremy Hunt is not yet breaking out the bunting. Yet the drop in inflation opens the door for the Bank to cut interest rates.
Rishi Sunak keeps telling us the economy has turned the corner. Might he be right?
Experts now predict inflation is on track to hit the Bank of England's 2 per cent target next month
Governor Andrew Bailey and his economists must be bold. This would put real muscle behind economic growth
We urge Governor Andrew Bailey and his economists to be bold and do so when they meet today. This would put real muscle behind economic growth. Consumers would be encouraged to spend and businesses invest. Mortgage rates would be reduced for families. And the mountainous cost of Government debt would be eased.
The concern is the Bank will be too timid to trim them – just as it was too slow in lifting borrowing costs when inflation soared.
Of course, there are still massive obstacles
