Jeremy Hunt has reiterated his commitment to halve inflation as households grapple with the cost of living crisis, amid data the UK economy has recovered from the pandemic faster than expected.
In a message aimed at reassurance ahead of the next financial developments, the chancellor acknowledged pressures on the domestic budget, but stressed that the government’s plan to cut consumer price index (CPI) inflation was working. Is.
Labor said the comments were “completely out of touch” with the economic realities faced by families across Britain.
Mr Hunt said in a statement: “As we head into autumn, I know family budgets are still stretched, but inflation is coming down, and now is the time to get things done. Has gone.
“We are on track to halve inflation this year and by sticking to our plan, we will ease the pressure on families and businesses.
“And it should come as no surprise, despite some people’s skepticism. The latest data shows that we have made a better return than many other G7 economies and are one of the world’s most attractive countries for investment.
The Treasury said limiting spending was seen as the key to keeping interest rates low and Mr Hunt would continue his “public sector reform” program aimed at making the state more efficient.
Shadow Chancellor Rachel Reeves said: “Jeremy Hunt’s comments are completely out of touch with the economic realities facing families across the UK.
“Going from no development to low development is not a winning sum and should not be the pinnacle of our ambitions.
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“After 13 years of economic failure the Conservatives dismantled the economy and left working people worse off with higher taxes, higher mortgages and higher bills.”
The Office for National Statistics said it is revising its forecast for gross domestic product (GDP) for 2021 after gaining access to new data which showed the UK economy could return to its pre-Covid level by then. had come back
By the last three months of 2021, the economy is now projected to be 0.6% larger than 2019 levels, compared to a previous estimate of 1.2% smaller.
The ONS said the revision means the UK economy is now set to grow by 8.5% during 2021, compared to the previous forecast of 7.6%.
The ONS did not change its forecast that GDP would decline by 5.8% in 2020.
The news was welcomed by the Chancellor, who was a backbench MP in 2021.
Inflation has eased from a high of 11.1% last October to 6.8%, but is still far from the Bank of England’s 2% target.
Prime Minister Rishi Sunak promised to reduce inflation from 10.7% in January to around 5.3%.
