As the global economy recovers, many countries are experiencing high inflation, in part due to pressures from rising energy prices and disruptions to global supply chains. These global pressures are the main driver of higher inflation in the UK.
The government’s commitment to price stability remains absolute. The Bank of England’s Monetary Policy Committee is responsible for controlling inflation and since they became responsible for controlling inflation it has averaged close to the 2% target.
We understand the pressure that a higher cost of living places on people. The government is working with international partners to tackle global supply chain disruption and providing support worth around £12 billion this financial year and next to help families with the cost of living. Alongside this, the government has announced a package of support to help households with rising energy bills, worth £9.1 billion in 2022-23.