Government: Road to 2% inflation target will be 'bumpy'

ODN

The exchequer secretary to the Treasury has said that it will be a "bumpy" road to the government's 2% inflation target. James Murray's comments come as new data from the Office for National Statistics estimate that the rate of UK inflation rose from 2.5% in December to 3% in.   Report by Faragt. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn

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00:00Well, today's figures underline the fact that we are in a different world than we were a

00:04few years ago under the previous government, where inflation was routinely double digits.

00:08But let's be clear, we know that families across the country are still finding it hard

00:12to make ends meet, which is why yesterday's data about real wages increasing their fastest

00:18rate in three years was so welcome, and why putting more money in people's pockets is

00:22at the heart of our plan for change to kickstart economic growth.

00:24Well, the Bank of England's been clear that they expected inflation to be slightly higher

00:28in the first half of this year, while still being on target to go down towards its 2%

00:33target rate.

00:34So we know that the road is going to be bumpy towards getting to that target, the Bank of

00:38England has been clear about that, but we're confident in our plan for change to make sure

00:42that we're kickstarting economic growth by making the reforms that are necessary to boost

00:47economic growth right across the country.

00:48Well, look, national security is an absolute priority for this government, and we've been

00:52very clear that we will do what is necessary to protect our national security.

00:56The Chancellor was also very clear at the Budget last year that the fiscal envelope

01:00has been set, and that her fiscal rules are non-negotiable, and we'll always make sure

01:04that we take fiscal decisions with responsibility, underpinning that stability in the economy,

01:08which is so crucial for investment and growth.

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