Inflation predicted to hit 4% over next year – Rishi Sunak addresses rise in 2021 Budget

Chancellor Rishi Sunak unveiled the inflation increase during his Autumn Budget announcement this afternoon. This represents a sharp increase from OBR’s earlier forecast of 3.1 percent in September earlier this year. In March 2021, inflation was predicted to hit 1.8 percent in 2022, with the Chancellor warning that the supply chain and energy bill crisis’ will take “months” to reach an end.

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As part of his Budget announcement, Mr Sunak outlined his plan to create two new fiscal rules for spending measures going forward.

According to the Chancellor, these new fiscal rules will “keep this Government on the path of discipline and responsibility”.

Reacting to the inflation rate on social media, the former pensions minister Steve Webb tweeted: “If inflation is going to ‘average’ four percent over the next year, then presumably it is going to peak at a higher figure?”

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