Chancellor Rishi Sunak has expressed optimism for the UK economy, assuring Brits that their bank accounts will see growth as inflation continues to decrease. Sunak, who recently returned from a holiday in California, believes there is "light at the end of the tunnel" for the economy. His comments come ahead of tomorrow's announcement of the latest UK inflation statistics by the Office for National Statistics.
Inflation Decreases
In June, the inflation rate dropped from 8.7% in May to 7.9%, according to the latest figures from the Office for National Statistics. Meanwhile, the Bank of England has raised interest rates to 5.25%. Speaking during a visit to a hospital in Buckinghamshire, Sunak emphasized the importance of reducing inflation to bring down interest rates. He stated, "We are making progress, and it's important that we stick to the plan."
Benefits for Bank Accounts
Sunak believes that if the plan succeeds, people will see the benefits in their bank accounts and pockets as inflation falls. The Chancellor urged trust in his ability to manage the economy, saying, "It's inflation that's making people feel poorer, and we need to bring it down to ease the pressure on people's mortgages."
Record Rise in Wages
This morning, the Office for National Statistics announced that wages have risen at their fastest rate on record. Regular pay, excluding bonuses, increased by 7.8% in April to June this year. However, when accounting for inflation, real wages only rose by 0.5% for total pay and 0.1% for regular pay in real terms.
Conclusion
Rishi Sunak is committed to halving inflation by the next general election, as he believes it is the key to improving people's financial situations. While challenges remain, Sunak remains positive about the future of the UK economy and urges the public to trust his management of it.
