Summary
The Bank of England's deputy governor stated that the Budget announced by the chancellor could lower inflation by 0.5% starting in 2026. Measures like capping fuel duty and reducing energy prices are expected to help slow price increases. The Office for Budget Responsibility forecasts a 0.4% reduction in inflation due to these measures.
Key Facts
- The deputy governor of the Bank of England believes the Budget could reduce inflation by 0.5%.
- Measures to control inflation include capping fuel duty and cutting energy prices.
- The Office for Budget Responsibility predicts a 0.4% inflation drop from these actions.
- UK inflation is currently at 3.5%, with expectations to lower to 2.5% next year.
- Inflation is projected to meet the Bank of England's 2% target by 2027.
- The Chancellor's Budget extends a 5p fuel duty cut and removes certain green levies from energy bills.
- Rail fares are frozen until March 2027, despite typically rising yearly.
- The government plans a new road tax for electric and plug-in hybrid vehicles starting in April 2028.
