According to data from the Office for National Statistics (ONS) UK inflation fell to the lowest level in two years last month and in October, the Consumer Prices Index inflation was 4.6%, compared to 6.7% in September.
This comes after energy prices their highest levels in 2022 as they were capped at £2,500, however this year Ofgem capped bills at £1,834 meaning prices have plummeted.
Prime Minister Rishi Sunak said: “In January I made halving inflation this year my top priority. I did that because it is, without a doubt, the best way to ease the cost of living and give families financial security.
“Today, we have delivered on that pledge.”
Shadow chancellor Rachel Reeves said, “After 13 years of economic failure under the Conservatives, working people are worse off with higher mortgage bills, prices still rising in the shops and inflation twice as high as the Bank of England’s target.”
Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales, said: “While the Prime Minister has achieved his target to halve inflation this year, this owes more to the downward pressure on prices from falling energy costs and rising interest rates than any Government action.”
The ONS’s chief economist Grant Fitzner said: “Inflation fell substantially on the month as last year’s steep rise in energy costs has been followed by a small reduction in the energy price cap this year.
“Food prices were little changed on the month, after rising this time last year, while hotel prices fell, both helping to push inflation to its lowest rate for two years.
“The cost of goods leaving factories rose on the month. However, the annual growth was slightly negative, led by petroleum and basic metal products.”