LONDON (MNI) – The UK Treasury put the blame for today’s
higher-than-expected inflation numbers on rising energy prices and noted
Bank of England forecasts that inflation is set to fall back rapidly in
2012.
“The Government understands that these are difficult times for
households, as price levels continue to be affected by high global oil
and gas prices. The impact of rising energy prices in September was in
line with previous forecasts by the Bank of England, who has also said
that inflation should then fall rapidly in 2012,” the Treasury stated.
CPI came in at 5.2% in September, matching the highest rate ever
recorded.
The Bank of England’s central forecast in its August Inflation
Report was for CPI to average 4.62% in Q3 and 4.98% in Q4, before
falling to 2.06%, almost bang-in-line with its target, by Q4 2012.
The Treasury also noted that the government is taking steps to cut
consumers’ fuel bills.
“The Government is taking action to help consumers with current
high costs, including cutting fuel duty and freezing council tax, and
the Prime Minister met yesterday with energy suppliers to discuss how to
bring down customers’ energy bills”.
–London newsroom: 0044 20 7862 7491; email: ukeditorial@marketnews.com
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