Inflation has fallen, but it’s not the good news the government wants you to think it is.
Prices are slowing because people and businesses can’t afford to spend. Petrol is cheaper due to global demand slumps, and recreation prices are down because families are tightening their belts. Businesses are facing higher wages, taxes, and energy costs — and many will have to pass that on.
This isn’t recovery — it’s demand destruction.
Unless Rachel Reeves’s infrastructure investment delivers real results, this may just be the eye of the storm.
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