Inflation is on track to be cut in half by the end of 2023, according to British Finance Minister Jeremy Hunt, who also pledged to concentrate on the aim as he outlined his top priorities in advance of the return to session of parliament after the summer recess.
By the end of the year, the inflation rate in Britain is predicted to be about 5%, which is less than it was in January. If this prediction comes true, one of Prime Minister Rishi Sunak’s five major promises to voters for 2023 will have been fulfilled.
In a statement, Hunt predicted that when inflation slows, pressure on household budgets will start to lessen. He also emphasised his initiatives to improve growth by boosting public sector productivity.
As the nation prepares for an election anticipated next year with the opposition Labour Party presently leading in the polls, Hunt and Sunak want voters to start feeling more hopeful about the economy.
Before MPs returned to parliament on Monday, Hunt declared, “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.”
The annual consumer price inflation rate in Britain decreased to 6.8% in July but remained the highest among the Group of Seven economies.
In September, Hunt said, “I do think we may see a blip in inflation, but after that, the Bank of England is saying it will fall down to around 5%,” according to a BBC report.
By the end of this year, the BoE predicts inflation will have decreased to 4.9%, which is a quicker decline than it had expected in May.
Hunt’s persistent emphasis on inflation will displease those Conservative Party legislators who demanded tax reductions prior to the election, outraged that British tax collections are at their greatest level as a percentage of the economy since the 1940s.
Revised economic figures released on Friday gave the government a much-needed support by demonstrating that the economy rebounded from the pandemic more quickly than previously believed.