Eat Out to Help Out sees inflation drop to weakest level since 2015
The UK’s inflation rate fell sharply to 0.2% in August as a result of the Eat Out to Help Out scheme.
The scheme, introduced by chancellor Rishi Sunak to get people spending money in the hospitality sector, pushed down restaurant prices.
Inflation in July was 1%, meaning the huge drop is one of the biggest falls in the annual inflation rate in recent years. It is at its weakest level since 2015.
The Office for National Statistics (ONS) also said the cut in VAT from 20% to 5% in the hospitality sector also contributed to the big drop in inflation.
‘The cost of dining out fell significantly in August thanks to the Eat Out to Help Out’scheme and VAT cut, leading to one of the largest falls in the annual inflation rate in recent years,’ deputy national statistician at the ONS, Jonathan Athow, said.
‘For the first time since records began, air fares fell in August as fewer people travelled abroad on holiday. Meanwhile the usual clothing price rises seen at this time of year, as autumn ranges hit the shops, also failed to materialise.’
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