the Economic inflation in it United kingdomIt is the highest among countries in the world G7It did not record a decline in May as analysts expected. As you mentioned Office of National Statistics (ONS) remained at the level of 8.7% on an annual basis Compared to the previous month.
This number makes it The Bank of England is almost certain to raise interest rates On Thursday, when he announces his new monetary policy decision, though The crisis of the high cost of living and the weakness of the economy. On average, analysts expected a modest decline of… 8.4%.
“We know that inflation is high It is affecting families and businesses across the country.” commented the Minister of Finance Jeremy Hunt In a statement, he confirmed the promise to reduce inflation by half this year.
Subsequently, The Bank of England is expected to raise interest rates again The main one, currently at 4.50%, on Thursday. The question is whether the increase will be 25 basis points or 50 basis points.
Recession: The solution to inflation
the hunt He stated in May that he supported the possibility that United kingdom Indulge in a recession If it is necessary to Reducing inflation.
In an interview with the TV channel Sky NewsThe minister expressed his support for the Bank of England in its battle against higher prices than expected, and said that he would support lowering interest rates. Increase interest rates to 5.5%.
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Courtesy: Forbes.com
“Yes, because inflation is ultimately a source of instability. If we want to achieve prosperity, if we want to grow the economy, if we want to reduce the risks of recession: We have to support Bank of England The minister responded when asked if he was comfortable with the Bank of England doing what was necessary to reduce inflation, even if that might cause a recession.
Hunt explained that the inflation rate reaching 8% annually in the long term is not beneficial to people, and he considered it a source of instability.