Chancellor-2% Inf Target 'Iron-Clad'; Tackling Inf Relentlessly Is Priority

In a letter to BoE Gov. Andrew Bailey, Chancellor of the Exchequer Jeremy Hunt, states that "High inflation is the greatest immediate economic challenge that we must address...Our commitment to the 2% inflation target is iron-clad and it applies at all times....Tackling inflation relentlessly must be the immediate priority."

• Hunt: "The BoE has my full support as you take action to return inflation to this target through your independent monetary policy decisions... Households and businesses should be in no doubt that we will act together to bring inflation under control"
• Hunt: "Next week I will meet with energy regulators to discuss how we can make sure falls in input costs are passed onto consumers." This will mark the second time in a week where the chancellor has sought to encourage participants in markets experiencing rising inflation to keep costs down, rather than using direct gov't intervention.
• Hunt: "We will continue to ensure that public sector pay awards do not exacerbate inflationary pressures." This could be a sign of further strikes across the UK's substantial public sector in the coming months if pay offers are below the level demanded by unions.
• Hunt: "The lesson from other countries is that if you stick to your guns, you bring inflation down. Our resolve to do this is watertight because it is the only long-term way to relieve pressure on families with mortgages. If we don’t act now, it will be worse later."
• Hunt's letter to Bailey, and Bailey's to Hunt can be found here.