PM's Claim of Lowering Inflation Challenged by Experts as Largely Due to Falling Energy Prices
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Prime Minister claimed government policy has lowered inflation, but economists are skeptical as it's mainly due to falling energy prices.
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Paul Johnson of IFS said cutting inflation is the Bank of England's job, not the government's, so the pledge to halve it was opportunistic.
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Lower energy costs, a global factor, were the biggest driver of lower inflation, not domestic policy.
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Bringing down inflation is officially the Bank of England's role through monetary policy, not the government's through fiscal policy.
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Government raising more income tax leaves people less money to spend, reducing inflationary pressure, but this wasn't part of the stated plan.