The rate of price rises, or inflation, is forecast to fall to 2.9% by the end of 2023, according to the Office for Budget Responsibility.
The pace of price rises is set to slow by more than expected this year.
Hunt says “high inflation is the route cause of” the strike action currently affecting many industries in the UK.
The government will continue to work hard to settle those disputes, he tells the Commons, “but only in a way that does not fuel inflation”.
The rate of price rises – known as inflation – is currently 10.1%. It should actually be closer to 2%, which is the target that the Bank of England aims for when it is setting interest rates.
Last November, the Office for Budget Responsibility predicted that the average inflation rate for 2023 would be 7.4%. It now expects 2.9% by the end of 2023.
Leave a Comment