The Chancellor has responded to ONS inflation statistics for
January 2024:
Chancellor of the Exchequer said:
“Inflation never falls in a perfect straight line, but the plan
is working; we have made huge progress in bringing inflation down
from 11%, and the Bank of England forecast that it will fall to
around 2% in a matter of months.”
Notes to editors
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 7%.
, Shadow Chancellor of the
Exchequer, responding to the latest inflation figures from the
Office for National Statistics, said:
“After fourteen years of economic failure working people are
worse off. Prices are still rising in the shops, with the average
households’ costs up £110 a week compared to before the last
election.
“Inflation is still higher than the Bank of England’s target and
millions of families are struggling with the cost of living.
“The Conservatives cannot fix the economy because they are the
reason it is broken. It’s time for change. Only Labour has a
long-term plan to get Britain’s future back by delivering more
jobs, more investment and cheaper bills.”
Ends
Notes
Average weekly household spending on items measured in CPI was
£508.50 in 2019/20 https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/expenditure/bulletins/familyspendingintheuk/april2019tomarch2020
The CPI all items index rose by 21% between 2019/20 and the
latest data in January 2024 https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/d7bt/mm23
That is worth £110 a week (rounded to nearest £10)
