Hunt tries to ease panic as inflation is highest in western Europe & food prices rise at fastest rate for 45 years

JEREMY Hunt today insisted Britain’s economy is on the “right track” – despite inflation STILL sitting at double figures.

New stats show inflation slightly dropped to 10.1% in March from 10.4% in February.

Reuters

Jeremy Hunt this morning insisted Britain’s economy is on the “right track”[/caption]

But food prices soared by an eye-watering 19.1%.

The Chancellor argued there’s no quick-fix to the crippling cost of living crisis.

But he stuck by Rishi Sunak’s pledge to halve inflation by the end of the year.

Mr Hunt told Sky News: “We have a plan and if we’re going to reduce that pressure on families it’s absolutely essential that we stick to that plan and we see it through so we halve inflation as the PM has promised.

“Although our core inflation is marginally higher than other countries, this is a common problem we’re all facing.

“Everyone is very clear that the UK is on the right track to focus on bringing down inflation.”

The small slowdown in inflation good news for stretched households, with some experts suggesting the toughest times are behind us.

The Office for National Statistics said that a drop in fuel prices was one reason for the fall.

But this was off-set by increases for food and leisure activities.

Food prices and non-alcoholic beverages rose by a huge 19.2% in the year to March, up from 18.2% in February – the highest annual rate for over 45 years.

ONS chief economist Grant Fitzner said: “Inflation eased slightly in March, but remains at a high level.

“The main drivers of the decline were motor fuel prices and heating oil costs, both of which fell after sharp rises at the same time last year.

“Clothing, furniture and household goods prices increased, but more slowly than a year ago.

“However, these were partially offset by the cost of food, which is still climbing steeply, with bread and cereal price inflation at a record high.”

Mr Hunt insisted it’s important that inflation continues to fall to ease pressure on families and businesses.

He said: “The OBR (Office for Budget Responsibility) is forecasting we will halve inflation this year – and we’ll continue supporting people with cost of living support worth an average of £3,300 per household over this year and last, funded through windfall taxes on energy profits.”