Drop in inflation to be welcomed but concerns for families remain - The Yorkshire Post says

Inflation has been a menacing cloud casting a shadow over everyone’s lives over the past year or so.

The war in Ukraine and the pandemic have led to an economic fragility that has led to many families being put in a difficult situation.

Therefore the latest official figures showing that price rises slowed to the lowest rate in two years last month after energy costs fell back are to be welcomed.

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However, the Government claiming that it is responsible for halving inflation is spurious at best. The reality is that Ministers don’t have a lot of control when it comes to cutting inflation. Besides, inflation still remains above the Bank of England’s 2 per cent target.

A file photo of an online energy bill. PIC: Jacob King/PA WireA file photo of an online energy bill. PIC: Jacob King/PA Wire
A file photo of an online energy bill. PIC: Jacob King/PA Wire

The lower energy price cap has helped drive the drop. Bills have been capped at £1,834 for the typical household this year as prices have fallen back. In contrast, last year Ofgem set the price cap at £2,500.

The Bank of England has also had to raise interest rates to a 15-year high.

Ensuring inflation comes down is only partly the battle for Britain. The more important question is how does the country recover from the damage that has already been done to public institutions and of course the nation’s coffers.

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Council budgets have been decimated. The NHS finds itself under immense pressure. The cost of mortgages has soared as a consequence of the Bank of England raising interest rates.

If the Prime Minister thinks that waving figures in front of the electorate will help his party recover ground then he is mistaken. People need to see their bills come down in real terms.