PM: Inflation pledge delivered as rate falls to lowest in two years

THE Prime Minister has declared the UK Government has delivered on its pledge to halve inflation, as price rises slowed to the lowest rate in two years last month after energy costs fell back.

Consumer Prices Index (CPI) inflation was 4.6% in October, down from 6.7% in September, according to data from the Office for National Statistics (ONS).

Rishi Sunak said it means he has met his target of halving inflation to below 5.4% by the end of the year.

But inflation remains above the Bank of England’s 2% target, and economists pointed out that the lower energy price cap helped drive the sharp drop last month.

Last year, soaring energy costs saw industry regulator Ofgem set the price cap at £2,500 for the typical household.

This year, bills have been capped at £1,834 for the typical household as prices have fallen back.

ONS chief economist Grant Fitzner said: “Inflation fell substantially on the month as last year’s steep rise in energy costs has been followed by a small reduction in the energy price cap this year.”