Good news about inflation in America, the impact on the whole world including India, read what actually happenedFinance Minister Hunt has hinted at tougher measures
Britain’s finance minister, Jeremy Hunt, reacted to the figures released a day before the budget, saying his government would take tough and necessary steps to control prices. His statement is being considered as a signal to increase taxes by reducing expenditure in the budget. Jeremy Hunt will present the new budget on Thursday.
“We have a duty to help the Bank of England (BoE) tackle inflation,” he said in a statement released earlier. Therefore, we will work very responsibly in the financial affairs of the country.
Inflation rate higher than all estimates
In a Reuters poll, economists had pegged retail inflation at around 10.7 percent, while the Bank of England had forecast inflation at 10.9 percent in October. However, the figures released on Wednesday were more alarming than the forecast. The ONS says that this rate of inflation would have risen to 13.8 per cent if the government had not set a cap on household energy bills of £2,500 a year to control prices. Experts say that this rise in inflation will put pressure on the Bank of England to increase interest rates further.