Chancellor responds to August inflation statistics + Other responses

The Chancellor's response to August inflation statistics is below.

Chancellor of the Exchequer, Jeremy Hunt said: 

“Today’s news shows the plan to deal with inflation is working - plain and simple. But it is still too high which is why it is all the more important to stick to our plan to halve it so we can ease the pressure on families and businesses. It is also the only path to sustainably higher growth.”

Rachel Reeves MP, Labour’s Shadow Chancellor of the Exchequer, responding to this morning’s inflation figures, said:

"The UK is forecast to have the highest Inflation of any major economy this year.

“The Prime Minister is too weak to turn things around, while his predecessor Liz Truss continues to call for the same policies that crashed the economy this time last year.

"The Conservatives have wreaked havoc and working people are paying the price.

"Labour will grow our economy so we can increase living standards, bring down bills and make working people in all parts of the country better off.”

Sue Davies, Which? Head of Food Policy, said:

“While the rate of food inflation continues to slow, shoppers are still seeing supermarket prices go up at an alarming rate, with increases on some foods far outstripping others, according to the Which? monthly tracker.

“Supermarkets can help ease the huge pressure faced by shoppers, especially families and those on low incomes, by putting affordable budget range essentials in expensive convenience stores all over the country. Which? research has found that these stores rarely, if ever, stock the cheapest products."

Responding to the latest CPI inflation figures which shows headline inflation falling to 6.7% and food inflation falling to 13.6%, Helen Dickinson, Chief Executive of the British Retail Consortium, said:

“Food inflation eased for the fifth month in a row, underpinning the hard work by retailers to bring costs down. Fierce competition between supermarkets has helped to bring down prices for many essentials including bread, butter, milk and fish. There was also good news for households as inflation levels for furniture and home appliances fell, though many homeowners will be looking nervously towards tomorrow’s interest rates decision by the Bank of England.

“With headline inflation still above 6% and at risk of being pushed back up from rising oil prices, retailers are in line for an increase of more than £400m-a-year in their business rates bill, determined by September’s CPI. This announcement would put further pressure on consumer prices, just as inflation is beginning to come under control. Last week, 44 retail leaders called on the Chancellor to freeze the business rates multiplier, which would otherwise hold back investment, including in new shops and jobs.”

-ENDS-

Notes:

• ONS Consumer Price Index figures