The UK’s Inflation rate has fallen sharply, as the government’s Eat Out to Help Out discount meal scheme in pubs and restaurants drove down the cost of living.
Office of national Statistic (ONS) figures just released show consumer prices rose by just 0.2% year-on-year in August, with cheaper clothing and air fares also pulling the CPI down according to The Office for National Statistics.
That’s the lowest inflation rate since late 2015, and sharply down on July’s inflation rate of 1%.
The one hundred million meal deals paid for by the Treasury were the primary cause of this easing of the cost of living, as people flocked to restaurants, bars and cafes to save up to £10 per head.
It was the largest fall in five years and down from the one per cent rate recorded in July, according to theONS Consumer Price Index.
Chancellor Rishi Sunak’s scheme, which offered consumers 50 per cent off meals at restaurants and pubs from Monday to Wednesday in August, was the biggest contributor to the decline, the figures show. Figures are still being collated but to date over 100 million meals were sold during the four-week period, the Chancellor had set aside £500 million to cover the cost of the scheme, however an estimated £250 million was raised in various taxes to offset the Chancellor’s costs.
A cut in VAT from 20 per cent to five per cent also contributed as did falling air fares and fewer clothing prices rises over the period.