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UK Treasury Secretary: Inflation Not a Concern in UK

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The UK Chancellor of the Exchequer said that the UK does not suffer from an inflation problem, although its core inflation is higher than other G7 countries, calling it “a common problem that we all face”.

Hunt stated: “When I spoke to my colleagues at the International Monetary Fund it was very clear to everyone that the UK is on the right track to focus on bringing inflation down and if we do this we can get through this very difficult period.” his confidence that the government’s promise to halve inflation by the end of 2023 (when the overall rate was 10.7%) will come true.

Hunt’s announcement comes after the Office for National Statistics announced that food prices jumped 19.2 percent in the 12 months to February, the biggest increase since August 1977.

While inflation in the United Kingdom has held above 10 percent for eight of the past nine months, inflation eased to 5 percent in the United States and 6.9 percent in the eurozone last month.

Inflation above 10 percent has sparked strikes by public sector workers, including doctors, nurses, teachers, civil servants and train drivers, whose wages are falling as the cost of living rises.

The Bank of England approved 11 consecutive interest rate hikes in an attempt to tame inflation, pushing the benchmark interest rate to 4.25 percent last month from just 0.1 percent in December 2021, pushing up the cost of borrowing for consumers and businesses.

Source: ITV + AR

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