UK inflation has eased to 3.4 per cent in February with food and energy prices driving it down – coming as a welcome boost for Britons.
The figure has dropped from 4 per cent in January, edging closer to the Bank’s target of 2 per cent.
The fall means the cost of living is at its lowest level since September 2021, when it stood at 3.1 per cent.
Meanwhile Britain’s economic growth rate could come close to US levels, the Chancellor predicted ahead of the publication of the latest inflation figures.
In an upbeat assessment of the economy, Jeremy Hunt said it was ‘absolutely possible’ the UK could grow faster than Europe.
Jeremy Hunt speaks to Rishi Sunak after presenting the annual budget statement in the House of Commons on March 6
US GDP grew by 3.2 per cent in the last quarter of 2023, figures show, while the UK economy shrank by 0.3 per cent. Eurozone economic growth was flat in the same period.
The US economy defied recession fears, helped by an increase in interest rates to tame inflation and a tight labour market which has kept wages high.
Appearing before peers on the Economic Affairs Committee this week, Mr Hunt spoke of efforts to raise productivity in the public and private sectors.
He said: ‘If you look at our policies to increase investment by the private sector with the full expensing tax break that we announced, if you look at our nurturing of the technology sector which I think is going to be a great opportunity for the UK going forward.
‘It’s absolutely possible to get our economic growth rate healthily closer to US levels of growth compared to continental European levels of growth.’
This is a breaking news story. More to follow.