Mr Hunt, who had warned of a possible “blip” in inflation, seized on the autumn as an indication that the Government’s plan to halve inflation by the tip of the 12 months is working.
But he acknowledged there may be “still immense pressure on family budgets” and “that means no borrowing binge, which would simply keep interest rates higher for longer”.
Mr Hunt has repeatedly sought to minimize the prospect of main giveaways in his autumn assertion, due on November 22, regardless of stress from some Tories – together with former prime minister Liz Truss – to chop taxes.
But he was bullish concerning the newest CPI figures from the Office for National Statistics (ONS), saying: “Today’s news shows the plan to deal with inflation is working – plain and simple.”
The Bank of England will announce its newest choice on rates of interest on Thursday, with most economists predicting one other rise, though the autumn in inflation might make the selection dealing with policymakers much less clear reduce.
Prime Minister Rishi Sunak has made halving inflation this 12 months – right down to a degree of round 5.3% – certainly one of his key coverage priorities.
Mr Sunak mentioned the autumn was “good news for hardworking families across the country” including: “Halving inflation is my top priority because inflation eats into the pounds in your pockets and makes everyone poorer.”
The Organisation for Economic Co-operation and Development (OECD) forecast this week that the UK economic system is about to witness the best inflation price of any G7 superior economic system.
The OECD mentioned it expects UK inflation to be 7.2% in 2023, which might be the quickest price throughout the G7 and the third quickest throughout the G20.
Wednesday’s ONS information underlined the cost-of-living pressures nonetheless dealing with households.
Food costs elevated 13.6% in August towards the identical month final 12 months, though this eased again from 14.9% progress in July, whereas the common value of petrol rose by 5.3p per litre between July and August.
Mr Hunt mentioned inflation was 40% decrease than its peak final autumn however acknowledged there may be nonetheless “a lot of pain for ordinary families”.
Liberal Democrat Treasury spokeswoman Sarah Olney mentioned the autumn in CPI “will be of cold comfort for families across the country still struggling with sky high prices and mortgages because the Conservatives have crashed the economy”.
Shadow chancellor Rachel Reeves mentioned: “The UK is forecast to have the highest inflation of any major economy this year.
“The Prime Minister is too weak to turn things around, while his predecessor Liz Truss continues to call for the same policies that crashed the economy this time last year.
“The Conservatives have wreaked havoc and working people are paying the price.”
She claimed a Labour authorities would “grow our economy so we can increase living standards, bring down bills and make working people in all parts of the country better off”.
