Terrible news for Sunak and Hunt puts election victory all but out of reach | Larry Elliott

Praise from the IMF and optimism on inflation have given way to echoes of last autumn's turmoil

There was only ever an outside chance that the Conservatives would win the next general election after the tumultuous period that resulted in Rishi Sunak becoming prime minister last October. The events of the past week mean the prospect of a fifth Tory victory is now vanishingly small.

Ironically, things started so well for the government. On Tuesday, the chancellor, Jeremy Hunt, luxuriated in the praise bestowed on the UK from the International Monetary Fund as it upgraded its growth forecasts for the economy.