• Now that inflation is halved, we can begin the next phase and turn attention to tax cuts
  • We can't do everything all at once, need to prioritise
  • We can and will deliver tax cuts over time
  • But we must avoid doing anything that risks the fight against inflation

With core inflation still closer to 6% at this stage, I'd be wary if I were Sunak to take it as a given that price pressures will continue to fall off in the same way it did over the last year. But as a politician, he does face tough questions and critique, so you can't blame him for suggesting that they are well on course to claim victory already. We'll see if he can say with such confidence the remarks above at the same time next year. I wouldn't be surprised if we're still revisiting the same conversation again by the middle of next year.