Inflation remains stubbornly high at 3.8%, almost double the level seen at the time of the General Election, despite the major national effort to bring it back to target after the pandemic.
While global pressures have certainly played a role, the UK now stands out among G7 economies for having some of the most persistent inflation. This suggests that domestic policy choices on spending, taxation, and regulation are also key factors in the challenge we face.
Ultimately, sustainable price stability depends on fiscal and monetary policy working together. The Treasury and the Bank of England must be fully aligned if we’re to deliver lower inflation, stronger investment, and long-term growth.
