File photo of Chancellor of the Exchequer Rishi Sunak
Chancellor of the Exchequer Rishi Sunak said his latest multi-billion-pound package of support for the UK economy will have a "minimal” impact on inflation, pushing back against criticism that the extra spending will see historic price gains accelerate even further.
Sunak on Thursday announced £15 billion ($19 billion) in additional aid for households to help see them through one of the deepest squeezes on incomes on record.
Still, with inflation already at a four-decade high of 9% and predicted to go even higher, economists warned the salvo risked stoking more price gains, and forcing the Bank of England to respond more aggressively.
When asked in a Sky News interview how much the package would add to inflation, Suank said "our estimate in my view is that it will have a minimal impact.”
Pushed on whether that meant adding 1 percentage point, he said "no, much, much less than that.” The aid won’t push up price because the measures are targeted, and partially funding by raising new money, he said.
