LONDON (BERNAMA) – The British economy finally saw inflation ease in 2023, but could still end up with a recession and more pressure from the full impact of the barrage of interest rate rises, with experts warning the economy has been left behind. "razor's edge". "Looking ahead to 2024, the German news agency reported. dpa.
Inflation became the key battleground for both the Bank of England and Prime Minister Rishi Sunak in 2023, as rising prices threatened to inflict lasting damage, prompting industrial action on a scale not seen since the decade. from 1970.
In January, Sunak made one of his five key promises: to halve inflation by the end of the year.
Tasked with the seemingly impossible task of reducing inflation to its 2 percent target, the Bank continued its relentless campaign of interest rate increases, which drove borrowing costs to levels not seen in more than 15 years.
Homeowners were hit by 14 consecutive increases, with rates hitting 5.25 percent in August before the Bank hit the pause button as inflation receded.
Having started the year at 10.1 per cent in January, inflation fell sharply and in October fell again to 4.6 per cent, allowing Sunak to declare an early victory in achieving his target.
Inflation continued its sharp decline in November, falling to 3.9 percent as fuel prices fell and increases in food costs slowed.
But Bank Governor Andrew Bailey tempered the government's joy, warning that the battle against inflation was far from over and there was still a long way to go before returning to the two per cent target.
Rather than being driven by political actions, much of the sharp pullback was also largely driven by this year's lower energy price cap compared to the £2,500 ($3,180) cap set a year ago. anus.
