Andrew Bailey and Jeremy Hunt vow to bring inflation down
Chancellor Jeremy Hunt
Alongside the Chancellor of the Exchequer, Andrew Bailey spoke to an audience at the Financial and Professional Services dinner on Monday 10 July, outlining plans for the «future of money» and a number of reforms, but inflation was at the top of the agenda for both.
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«Looking back at all that has happened in recent years, the UK economy has been hit by a series of external inflationary shocks: higher goods prices in global markets owing to supply bottlenecks created by the pandemic; and higher energy and food prices following from Russia's war on Ukraine and its people,» said Bailey.
«Looking ahead, UK headline inflation is set to fall markedly over the remainder of the year. This largely owes to lower energy prices as last year's substantial increases drop out of the annual calculation. Food prices should fall too as lower commodity prices feed through to prices in the shops.»
He said returning inflation to target is important, not least because people should trust that their hard-earned money maintains its value.
«The future of money is the subject for the rest of my time,» Bailey said.
Hunt reiterated plans to «do what is necessary for as long as necessary to tackle inflation persistence and bring it back to the 2% target».
Meanwhile, the chancellor also revealed the government's Mansion House reforms, which included strengthening the UK's position as a listings destination, reforming and simplifying regulation, and improving outcomes for pension fund holders.
He highlighted the recent decline in the number of domestic listed companies in the UK, part of a wider trend across western markets.
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