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MNI BRIEF: UK Inflation To Hit 2.0% Target In 2025 - OBR

(MNI) London

Chancellor of the Exchequer Jeremy Hunt told parliament Wednesday that the official fiscal forecasts show inflation returning to the 2% target in 2025 after factoring in the latest fiscal measures.

Headline inflation will fall to 2.8% by the end of 2024, before falling to the 2% target in 2025 on the Office for Budget Responsibility forecasts, Hunt said, which appears a little softer than the most recent Bank of England forecast, which had it at 3.1% in 2024 and 1.9% by end 2025. The Bank of England had forecast inflation to be 2.1% by the end of 2025 in the November forecast round, that was without sight of the government's lastest fiscal plans..

Hunt, in his Autumn Statement, also announced that benefits in the next fiscal year would be raised in line with the September inflation outturn of 6.7% rathther than the lower October figure that had been speculated about in some media reports.

MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
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MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
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