Chancellor Rachel Reeves says she anticipates a "sharp decline in inflation" back to the government's 2% target by summer, after it was announced earlier that the rate of inflation rose to 3.4% in December, up from 3.2% in November. Report by Keechl. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
00:00The Bank of England expected inflation to rise slightly to 3.4 percent this month.
00:05That is what has happened. But they also forecast that inflation gets back to the 2 percent target by late spring, early summer.
00:13That continues to be their expectation and mine because of the measures that I took in my budget to freeze prescription charges for the second year in a row,
00:23to freeze rail fares, but also to take £150 on average off of people's energy bills from April.
00:31So when those measures come in, we expect to see that sharp decline in inflation,
00:35which is obviously good news for families across our country after a number of years when inflation has been too high,
00:44reaching double digits under the last government.
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