Fact check: Inflation was 3.4% when the Conservatives took power and is 2% now

The latest available data is from June this year and shows inflation was 2.0%.

August Graham
Wednesday 31 July 2024 03:00 EDT
Shadow chancellor Jeremy Hunt was speaking in the Commons on Monday (House of Commons/UK Parliament/PA)
Shadow chancellor Jeremy Hunt was speaking in the Commons on Monday (House of Commons/UK Parliament/PA) (PA Wire)

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Shadow chancellor Jeremy Hunt has said that, when Labour took power this year, inflation was “nearly half” where it had been when the Conservatives took power in 2010.

Mr Hunt said: “Inflation is 2% today – nearly half what it was in 2010 when we had to clear up the mess inherited from a Labour government.”

Evaluation

The accuracy of Mr Hunt’s statement depends on how he defines “nearly half”, and which month he is comparing with.

Inflation was 3.4% in the month the Conservatives took charge in May 2010, and 3.7% the month before they took charge. The latest figures show that in the party’s last full month in charge inflation was 2.0%.

The facts

There are different ways of measuring inflation. The most commonly used is the Consumer Prices Index (CPI).

In May 2010 – the month that Labour lost power – CPI inflation was 3.4%. CPI was 3.7% in April 2010, the month before power changed hands.

The latest available CPI showed a reading of 2.0% for June 2024, which was the last full month that the Conservative Party was in power.

There are also other measures of inflation. CPIH inflation – which includes housing costs – was 2.5% in May 2010 and 2.8% in June 2024.

Meanwhile Retail Prices Index (RPI) inflation was 5.1% in May 2010 and 2.9% in June 2024.

Links

Hansard Monday July 29, 2024 – Public Spending: Inheritance (archived)

ONS – CPI annual rate (archived)

ONS – CPIH annual rate (archived)

ONS – RPI annual rate (archived)

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