‘Must stick to plan to bring down nightmare inflation,’ says UK finance minister Jeremy Hunt

London: British finance minister Jeremy Hunt on Wednesday indicated that the UK government needed to stick to its plan and take tough decisions to rein in rising inflation even as he welcomed a marginal dip in the recent figures.

“High inflation is a nightmare for family budgets, destroys business investment and leads to strike action, so however tough, we need to stick to our plan to bring it down,” the finance minister said in a statement.

“While any fall in inflation is welcome, we have a plan to go further and halve inflation this year, reduce debt, and ensure that the economy grows — but it is vital that we take the difficult decisions needed and see the plan through.”

Inflation in the United Kingdom eased slightly last month after hitting a 41-year high in October, providing some relief to the Bank of England. The pressure on households, however, remained intense as food and drink prices climbed at the fastest pace since 1977, according to government data.

Annual consumer price inflation fell to 10.5% in December from November’s 10.7%, the Office for National Statistics said on Wednesday, a marginal drop in line with forecasts made by economists.

Lower prices for petrol and clothing pushed down the headline inflation rate, but the cost of food and non-alcoholic beverages was 16.8% higher compared to a year earlier, the sharpest increase since September 1977, led by eggs, milk and cheese.

British policymakers have warned of continued upward pressure on inflation from a tight job market and other factors, and financial markets expect the central bank to raise its main interest rate to 4% on February 2 from 3.5%.

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