Chancellor Jeremy Hunt has acknowledged the possibility of a temporary increase in inflation in September, despite his claims that the government’s measures to reduce it are effective. While inflation, as measured by the Consumer Price Index (CPI), has dropped to 6.8 percent from its peak of 11.1 percent in October last year, it still falls short of the Bank of England’s target of 2 percent.
The inflation figures for August are set to be released in September. Mr. Hunt, speaking on BBC’s Sunday With Laura Kuenssberg, stated that the government’s plan is working and inflation is decreasing. However, when confronted with the potential rise in August, he conceded that there may be a “blip” in inflation but reassured that the Bank of England expects it to fall to around 5 percent afterwards.
Mr. Hunt emphasized the importance of reducing inflation quickly to benefit the public. He claimed that halving inflation, as pledged by Prime Minister Rishi Sunak, would provide individuals with an extra 5p in their pockets rather than a mere tax cut. To achieve this, he noted the need to grow the economy and spend taxpayers’ money more efficiently.
In pursuit of efficient spending, Mr. Hunt has contacted Secretaries of State to inquire about the time spent by public servants on unnecessary administrative work. He stressed the importance of restarting the public service reform agenda, clarifying that it does not involve further cuts.
Regarding his decision-making as chancellor, Mr. Hunt denied that he would have acted differently had he known about the UK’s faster-than-expected post-pandemic economic recovery. He explained that the decisions made were driven by the necessity to lower inflation, which had reached over 11 percent. Bringing down inflation was a top priority, as it directly affected the rising costs of groceries and fuel, leading to hardships for families.
The Liberal Democrat Treasury spokesperson, Sarah Olney, criticized the chancellor’s characterization of rising expenses as a mere “blip,” stating that the Conservative government has failed to address the issue adequately.