Reacting to today’s figures showing inflation stubbornly high, Foreign Secretary Jeremy Hunt said the new figures “strengthen the case for the government to stand firm.”
The new figures show that the Consumer Price Index (CPI) rose 8.7 percent in the 12 months to May, unchanged from April.
Meanwhile, core inflation, which excludes volatile items such as food and energy prices, rose to 7.1 percent in May, from 6.8 percent in April.
It means that underlying inflation in the UK economy is at its highest level in 31 years.
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Mr Hunt said: “Well, today’s numbers strengthen the case for the government to stand its ground, no matter the pressure from left, right or centre.
“We won’t get sidetracked because if we’re going to help families, if we’re going to take the pressure off people with mortgages, on businesses, we’ve got to squeeze every last drop of high inflation out of the economy. .
“And if you look at what’s happening in other countries, you can see that increases in interest rates reduce inflation over time. That’s going to happen here, but we have to be patient, we have to stay the course and then we’ll go to the other side.”
The chancellor has also given the Bank of England full government backing ahead of tomorrow’s interest rate update, with another hike expected.
“We will not waver in our determination to support the Bank of England in its bid to de-inflate our economy, while also providing targeted cost-of-living support,” he said.
Reacting to today’s Chancellor’s statement, Labor Shadow Cabinet Minister Jim McMahon said sky news he is “not sure” what Mr. Hunt really means.
He questioned whether “holding firm” meant food inflation would continue to rise and “make the cost-of-living crisis harder for workers.”
The shadow environment secretary accused the government of “failing to act or being so slow to act that we are simply not seeing the progress we need.”
The Shadow Chancellor of the Labor Party, Rachel Reeves, also issued a statement saying the government “cannot control this problem because they are the problem.”
He added: “13 years of the Conservatives and their disastrous mini-budget are hurting our economic security and leaving families worse off.
“Simply continuing on this conservative path of controlled decline is not the pinnacle of Labour’s ambition. We need a more secure economy, more secure family finances, and a plan to help us seize the opportunities that come our way.”
Meanwhile, Liberal Democrat Treasury spokeswoman Sarah Olney said the government “is failing miserably to reduce inflation and provide relief to struggling families facing sky-high bills.”
She added: “Homeowners now face the likelihood of further interest rates being added to their monthly mortgage payments, all while the chancellor simply sits on his hands.
“It is incredible that ministers refuse to support families in need when it is the catastrophic failure of this Conservative government to manage the economy that caused this crisis.
“This must be the most indifferent government to ever set foot on Downing Street. It is as if the ministers lived on another planet”.