I am delighted to announce today that inflation has fallen to 4%, down from a peak of 11% last October. This significant drop is a testament to the hard work and decisive action of this Conservative government.
For months, families and businesses faced the harsh reality of rising prices. We understood the pain this caused and took immediate steps to tackle the root causes of inflation. We introduced targeted support for the most vulnerable, cut taxes for working families, and worked tirelessly with the Bank of England to bring inflation under control.
This 7% drop in inflation is a clear sign that our plan is working. It is not a time for complacency, but for cautious optimism. We must remain vigilant and continue to take responsible steps to build a stronger, more resilient economy.
Key points of our success:
- Targeted support: We introduced the Energy Bills Support Scheme, saving households hundreds of pounds on their energy bills. We also increased the National Living Wage and boosted Universal Credit, ensuring those most in need were shielded from the worst impacts.
- Tax cuts: We delivered the largest tax cut in a generation, putting more money back in the pockets of hardworking families and businesses. This helped stimulate economic growth and boost consumer confidence.
- Monetary policy: We worked closely with the Bank of England, which has raised interest rates to curb inflation. This responsible approach ensures long-term economic stability.
Looking ahead:
While we celebrate this progress, we remain focused on achieving our ultimate goal: bringing inflation back down to the Bank of England's 2% target. We will continue to make responsible economic decisions, create a pro-business environment, and support families and businesses as we navigate the global economic challenges.