UK inflation drops to 4.6% but economists say external factors, not Sunak policies, are the main driver
-
Inflation has fallen to 4.6%, meeting Sunak's pledge to halve it from over 10%. He quickly took credit despite economists saying it was due to external factors.
-
Falling global energy prices and Bank of England interest rate hikes have driven the reduction, not government policy.
-
Sunak says government played a part with "eye-watering" tax and spending decisions to support the Bank of England.
-
Inflation is expected to keep easing but unlikely to hit the Bank's 2% target until late 2025.
-
Households face a 5% rise in the energy price cap in January, putting further pressure on the cost of living.