Written question asked by Lord Redwood (Conservative) on Monday, 16 May 2022, in the House of Commons. It was due for an answer on Wednesday, 18 May 2022. It was answered by John Glen (Conservative) on Thursday, 19 May 2022 on behalf of the Treasury.

Inflation

Question: To ask the Chancellor of the Exchequer, what assessment he has made of the reasons for which the rate of inflation is above the Government's target of two per cent.

Answer

As the global economy recovers from COVID-19, many economies are experiencing high inflation. Rising global energy and commodity prices, along with disruptions to global supply chains caused by a mismatch between elevated global demand for goods and bottlenecks in supply as a result of the pandemic, have combined to push up inflation. Additionally, Russia’s invasion of Ukraine has added to inflationary pressures and created economic uncertainty. It has increased the price and volatility of energy and some other commodities and has added to disruption in global supply chains.

The government’s commitment to price stability remains absolute. The Bank of England is responsible for controlling inflation – since the Bank became responsible for controlling inflation it has averaged close to the 2% target.

We are providing significant support where we can and stand ready to take further action. We’re saving the average worker £330 a year through reducing National Insurance Contributions, changing Universal Credit to save over a million families around £1,000 a year, and providing millions of families with £350 each this year to help their energy bills.

Secondary information

Type: Written question
Reference: 2334
Session: 2022-23
Subjects: Inflation
Link: View this Written question on www.parliament.uk

Inflation

Secondary information

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