Chancellor Jeremy Hunt is confident his plan to reduce rising prices is working and will soon ease the financial strain on UK households.
Ahead of parliament returning on Monday, Mr Hunt acknowledged that many households across the country are still struggling financially.
He emphasised that “sticking to the plan” to reduce inflation is the best way to help them.
Despite the Bank of England‘s prediction of a 7.1% inflation rate, experts still expect it to drop to around 5% by the year-end.
Inflation has eased back to 6.8% from a recent eye-watering peak of 11.1% last October, but is still far from the Bank of England’s 2% target.
Meanwhile, the Office for National Statistics (ONS) has significantly upgraded the UK’s growth figures, showing that the economy rebounded from the COVID pandemic faster than previously thought, surpassing its pre-pandemic size nearly two years ago.
“As we move into autumn, I know family budgets are still stretched, but inflation is coming down and now is the time to see the job through. We are on track to halve inflation this year and by sticking to our plan we will ease the pressure on families and businesses alike,” Mr Hunt said.
“And it should be no surprise, despite the doubting from some, latest figures show we have bounced back better than many other G7 economies and are one of the most attractive countries in the world to invest.”
He added: “This government is unlocking the UK’s potential – attracting more investment, creating new jobs and growing the economy.”
Responding to Mr Hunt’s comments, Rachel Reeves MP, Labour’s shadow chancellor, said he was “completely out of touch with the economic realities facing families across Britain”.
She added: “Going from no growth to low growth doesn’t merit a victory lap and shouldn’t be the summit of our ambitions.”
She said that Labour’s plan for the economy is about “investing in Britain” to “unlock growth, cut household bills and make working people in all parts of the country better off”.
Chancellor Jeremy Hunt will be interviewed on Trevor Phillips on Sunday tomorrow morning. Tune into Sky News from 8.30am to watch.