There has been some encouraging news on the inflation rate recently and it is important to examine the benefits that this will bring to our economy. The CPI inflation rate fell to a record low of 0.3% in January, helped especially by lower food and oil prices. This downward trend looks set to continue with the possibility of negative inflation coming briefly in the Spring, according to the Governor of the Bank of England. Mr Carney also said that the falling oil price was “unambiguously good” for the economy and motorists have seen petrol prices fall by more than 8p per litre.
All this will have positive effects on the British economy, with the Bank of England predicting growth this year of 2.6% which have led to forecasts of strong wage growth this year.
This is good for hardworking people across the country. Falling prices and rising wages means that more and more pressure is being lifted from family budgets, and this should support growth in consumer spending.
The recovery is, of course, not complete, but these figures are another sign that the Long-term Economic Plan is working. The deficit is down by a half, a thousand jobs have been created for every day that this Government has been in office, and now, low inflation and increasing wages are making life easier for families up and down the country. Britain should stay the course.