RISHI Sunak yesterday vowed to cut taxes after inflation hit its target for the first time in three years.
He has promised more cash in people’s pockets if re-elected as the growth rate stood at two per cent.
It is a victory for the PM, as inflation was at a 41-year high of 11.1 per cent in October 2022 — after energy cost hikes over the invasion of Ukraine.
He said: “It is because of that economic stability that we have restored, which was my priority when I got this job, that we have now been able to start cutting people’s taxes.
“If I win this election, I want to keep doing more of that.”
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Mr Sunak, who was at the Sizewell B nuclear power station in Suffolk yesterday, has promised to make £17billion of cuts over the next five years.
He added: “Labour would reverse the progress we have made and whack taxes up.”
The Office for National Statistics said food inflation dropped to 1.7 per cent in the 12 months to May from 2.9 per cent for the year to April.
Falls in furniture and package holiday costs helped to bring the overall rate down.
But money markets say the Bank of England will not be budged today on dropping interest rates from the current 16-year high of 5.25 per cent.
Economists say its concern over inflation in pubs, hotels and restaurants still being at 5.7 per cent is pushing back the chances of a rate cut.
Shadow Chancellor Rachel Reeves said people were still worse off. She said prices and mortgage bills were higher and taxes at a 70-year high.
Labour have ruled out rises for income tax, National Insurance and VAT but will hike levies by £8.5billion, hitting big businesses and private schools.