Andrea Leadsom has suggested the cost of living crisis has “ended” after a fall in the rate of inflation “obviously cheered everyone up”.
On Wednesday, the Office for National Statistics revealed UK inflation has fallen from 4% in January to 3.4% last month, the lowest it’s been since 2021.
While the news is significant given that the measure of the growing cost of goods and services peaked at 11.1% in October 2022, a 41-year high, a decline only means prices are going up at a slower rate, they are not falling.
What’s more, the 3.4% figure is still short of the Bank of England’s target of 2%.
Nonetheless, Conservative minister Leadsom was keen to promote the downward trajectory against the backdrop of Tory unrest.
When asked on Sky News about whether the party was now united, Leadsom said instead: “I think what’s really important is we have seen a fantastic drop in inflation today. That’s what’s really important.
“That has obviously cheered everyone up, it’s what we have been working towards is seeing the cost of living crisis end ... seeing people able to take more home in their pay packets or in their salaries every day. That’s the critical point.”
When Rishi Sunak became prime minister, he promised to halve inflation by the end of 2023 – and it ended up being the only one of his five pledges he managed to fulfil.
However, economists question whether government’s can sincerely take credit for getting inflation back under control, not least since central banks control the base interest rate that is the key tool to combat price growth, and ministers blamed global factors when inflation spiralled to record highs.