London, November 15 (AP) Inflation in Britain has fallen to a two-year low after a sharp decline in October. The reason for this is to exclude the sharp rise in energy bills last year from comparison on an annual basis.
According to data released by the Office for National Statistics on Wednesday, consumer prices in the year to October were 4.6 percent higher than a year earlier, down from the previous month’s figure of 6.7 percent.
This decline in inflation means that the commitment made by British Prime Minister Rishi Sunak to halve the inflation rate this year has been fulfilled. When Sunak became Prime Minister, the inflation rate was more than 10 percent.
“I did this because there is no doubt that this is the best way to lower the cost of living and provide economic security for families,” he said. Today we have fulfilled that commitment.
Although the government has got relief from the decline in inflation, a major reason for this is the big increase in interest rates by the Bank of England. The Bank of England has a target of bringing inflation within the range of two percent.
Earlier this month, the central bank kept its key interest rate at a 15-year high of 5.25 percent. Along with this, he had indicated that the cost of borrowing will remain at a high level for some more time.
AP Ajay Ajay Niharika