The Chancellor responded to ONS inflation statistics for
December 2023.
Chancellor of the Exchequer said:
“As we have seen in the US, France and Germany, inflation does
not fall in a straight line, but our plan is working and we
should stick to it. We took difficult decisions to control
borrowing and are now turning a corner, so we need to stay the
course we have set out, including boosting growth with more
competitive tax levels.”
Further information:
- We are tackling inflation by:
- Remaining steadfast in our support for the independent
Monetary Policy Committee of the Bank of England as it takes
action to return inflation sustainably to the 2%
target.
- Keeping borrowing under control, by consistently
withdrawing fiscal support over the forecast. Borrowing is
lower this year and next than it was forecast to be in the
Spring and the OECD note the stance “adequately support
monetary policy” in fighting inflation.
- Boosting labour supply. Labour market conditions are a
key problem affecting UK businesses’ growth, as well as a
significant driver of domestic inflation. Together, the
packages at Autumn Statement and Spring Budget 2023 were the
two largest increases to labour supply and potential GDP
resulting from policy the OBR has ever scored.
- Introducing ambitious supply-side measures to support
non-inflationary growth, including delivering full expensing
to boost investment
- Food inflation is slowing. The latest ONS statistics show
food inflation has slowed to 8.0%. Last month it was 9.2%.
- The latest data shows that inflation in France was 4.1% in
December and Germany 3.8%.
, Labour’s Shadow Chancellor
of the Exchequer, responding to the latest inflation
figures, said:
“Any rise in inflation is bad news for families who are worse off
after fourteen years of economic failure.
“Prices are still rising in the shops, with the average weekly
shop £110 more than it was before the last general election, and
the average family set to be £1,200 worse off under Rishi Sunak’s
tax plan.
“Britain cannot afford another five years of economic failure.
Only Labour can deliver the change Britain needs and make working
people better off.”
IPPR responds
to rise in inflation
Reacting to today’s monthly inflation
figures Carsten Jung,
senior economist at IPPR, said:
“Even though inflation inched up
slightly, inflation is coming down more quickly than many
predicted just a month ago. This is largely due to global supply
chains recovering and energy costs
falling.
“We have long been arguing that there
was too little focus on this and too much attention on wage
earners. As a result, the Bank of England tightened the screws
too much. Similar to the US central bank, we will likely see a
slow reversal of its policy stance towards cutting rates sooner
this year.
“But even as prices are rising less
quickly, we need to do more to address the fallout from past
price jumps. The cost of food remains high and benefits are not
sufficiently keeping up with the higher cost of living.
Businesses should be urged to do more to actively bring prices
and profits down.”
Which?:
‘Completely unacceptable’ if inflation data triggers telecoms
price hikes
Rocio Concha, Which? Director of
Policy and Advocacy, said:
“This announcement could
trigger a new wave of price hikes from big broadband and mobile
providers - just 12 months after many firms imposed price
increases of more than 14% on customers. It
would be completely unacceptable for providers to follow BT
and inflict another above inflation increase on customers
after Ofcom proposed banning this practice, saying it causes
substantial consumer harm.
“Telecoms providers must step up
and do the right thing by immediately scrapping any plans to hit
their customers with above inflation price hikes this
April.”
