Chief Secretary to the Treasury Darren Jones has described the latest inflation data as a "good news story" despite the rise to 2.3% in October, defending the government's handling of the economy and last month's budget.
Speaking to reporters, Mr. Jones highlighted the stark contrast between current inflation rates and the double-digit figures of 2022. He stated:
"Gone are the days when inflation is 10% or 11% driving family bills through the roof. Inflation is stable, it's around target, and the key driver of inflation statistics today is that expected increase in the energy price cap set by the regulator Ofgem."
He emphasized the proximity of inflation to Labour's target of 2%, claiming this was "good for families across the country."
When pressed about concerns raised by retailers regarding potential price increases and job losses attributed to measures in the budget, Mr. Jones defended the government's economic strategy. He argued that the budget laid the groundwork for economic stability, stating:
"The budget fixed the foundations in this country, it turned the page on economic instability that we saw under the previous government."
Critics, however, have warned that policies such as the rise in national insurance contributions for employers could have inflationary effects and strain businesses already facing challenges.
This tension has sparked debate over whether the government’s approach will ultimately benefit consumers and workers in the long term.
The inflation rise and its implications continue to be closely monitored ahead of the Bank of England’s next base rate decision in December.
Source:
Sky news
Image:
ABC
