Inflation warning: Ken Clarke says rate may ‘rise further’ as Brits struggle with cost
Inflation rate could 'rise further' for UK says Ken Clarke
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Former Chancellor Ken Clarke has intervened following Rishi Sunak’s budget announcement to warn Britons that the UK’s inflation rate could “rise further.” Britons have faced a rise in the cost of living as inflation continued to rise. Lord Clarke argued on TalkRADIO that hopes inflation may begin to fall by Christmas were “fanciful,” he also pressed the Chancellor to ensure the Treasury sticks to inflation targets.
Lord Clarke told TalkRADIO: “The one that worries me most at the moment is inflation.
“I mean the idea that inflation is going to vanish by Christmas I think is rather fanciful.
“We could be in for a long period of inflation we could yet see inflation rising yet further leading to more difficulty.
“Because I don’t see the energy price level…that’s not going to come down quickly either.
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“The Bank of England, for example, he’s really got to remember his interest rate targets.
“Indeed Rishi Sunak had a rather pointed sentence in his speech reminding them of their duty to hit inflation.”
Following the Budget on Wednesday BBC Political Editor Laura Kuenssberg stressed that Rishi Sunak will “better hope the projections are right,” after the Chancellor announced a big spending increase.
The Chancellor announced the autumn Budget in a speech to Parliament this afternoon with a number of high-profile giveaways including a reduction in beer duty.
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However, Ms Kuenssberg argued that rising inflation made economic projections from the Treasury a risky gambit.
Ms Kuenssberg told BBC Politics Live: “Rishi Sunak in a funny way and that budget someone just described to me it was there’s something for everyone budget.
“You know, there was a bit for business here with some of the announcements I’m sure Simon will talk about.
“There was that big, bigger than expected tweak to Universal Credit, which the Chancellor says 2 million families will benefit from a response to some of the concerns about the cost of living crisis.
“But also right at the very beginning of his speech, he highlighted something that is extremely important that will colour the political atmosphere, potentially for many, many months, is that projecting that inflation will hit 4 percent.
“And that is going to be a challenge for the government is going to be a challenge for everyone,” she continued.
“But he’s benefitting for the fact that it seems as if the pandemic did less permanent damage to the economy than we thought.
“But there’s an awful lot of very expensive stuff he’s promised to do in there and he better hope that the numbers and those better projections are actually right.”
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