UK Inflation Falls Below 5% for First Time in 2 Years, Offering Sunak Brief Economic Bright Spot
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UK inflation could fall below 5% in October for the first time in 2 years, allowing Sunak to claim he met his pledge to halve the 10.7% inflation rate.
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Falling inflation is mainly due to decreased energy prices rather than government fiscal policy. Chancellor Hunt has raised taxes and cut spending.
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Lower inflation will be the main positive news in Hunt's autumn budget statement, as the economy is stagnant.
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Forecasts show inflation slowing towards the 2% target by end of 2025, though the economy will stagnate.
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The UK economy has shown resilience amid rising costs and geopolitical turmoil, though long-term outlook is dismal.