Chancellor Jeremy Hunt has hinted at a possible “blip” in inflation this month, even as he remains confident that the Government’s plan to tackle inflation is effective.
This warning comes ahead of the anticipated publication of August’s inflation figures on 20th September.
In an interview on BBC’s Sunday With Laura Kuenssberg, Hunt said: “The plan is working, inflation is coming down.” This comes in the backdrop of the most recent data that shows inflation as measured by the Consumer Price Index (CPI) has eased to 6.8%, although still far from the Bank of England’s 2% target.
When confronted about the possibility of a rise in August’s inflation, Hunt said: “I do think we may see a blip in inflation in September.” However, he added that “after that the Bank of England is saying it will fall down to around 5%.”
He also further elaborated on the Government’s strategy for putting money back into the hands of the public: “If we are going to put money in people’s pockets quickly, the fastest thing I can do is to deliver the Prime Minister’s pledge to halve inflation, because that puts not 1p in the pound, which might be a tax cut, but 5p in the pound in people’s pockets that they wouldn’t have had if inflation stays high.”
Prime Minister Rishi Sunak has pledged to halve inflation this year, necessitating a fall to approximately 5.3% to fulfil this promise.
