The high inflation we’ve had globally since Russia’s illegal invasion of Ukraine has been felt by us all and has weighed heavily on the economy. The good news is that all the indicators are there for better times ahead.
The Office for Budget Responsibility predicts that inflation will fall sharply to 2.9% by the end of this year. This is a more rapid decline than previously expected and will ease the pressure on households and businesses.
We’ve seen major falls in the price of petrol, and more recently the price of diesel has dropped, with a much lower differential between the two prices than there has been for the last year or so. This is significant as it helps relieve pressure on transportation costs, especially for food, which has suffered from higher price rises than the overall inflation rate. Further falls in the price of petrol and diesel feel likely as the oil price is now back down to 2021 levels.
Energy prices have been at record highs, driven by the huge increase in the cost of gas. Government support through both money off our bills and the price cap has been very welcome. Last week, gas futures prices fell to their lowest level for two years. This will feed through to our energy bills from July, helping homes and businesses. Helping to get inflation down is rightly a major government priority. Inflation did reduce last month but only very slightly. Bigger falls are coming soon.
Keeping our economy strong has been difficult during this time of high inflation, but there is further good news ahead. Only a few weeks ago, it felt like some Labour politicians were rubbing their hands with glee saying that the UK was in recession. This had indeed been forecasted by the Office of Budget Responsibility, but that forecast has changed. Under the Conservatives, our economy is more proving to be more resilient than predicted. There was no recession over the last few months and neither is one now predicted. Historically, Crawley bounces back quickly from economic slowdowns and that feels increasingly likely this time.
Councillor Duncan Crow, Leader of Crawley Borough Council Conservative Group
17th May 2023
