UK inflation falls to 2-year low but underlying pressures persist, challenging Sunak's growth aims
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UK inflation plunged to 4.6% in October, the lowest level in 2 years, largely driven by falling energy prices. This allowed PM Sunak to claim victory on halving inflation.
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But many say inflation is still too high, with costs for households and businesses remaining worrisomely elevated.
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Underlying inflation pressures persist, including still high services inflation of 6.6% and rising wage growth.
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The UK economy recorded zero growth in Q3, raising worries about stagflation (high inflation and stagnant growth).
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Business surveys show falling confidence and activity amid high interest rates and weak demand, making Sunak's growth aims a distant prospect.