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27.05.2022

UK Finance Minister: The new government support measures will only slightly affect the inflation rate in the country

UK Finance Minister Rishi Sunak - who yesterday announced a £15 billion cost-of-living support package, including a £400 rebate on energy bills for everyone and a one-time payment of £650 to eight million of the poorest households - said today that the impact of the new support measures on inflation will be much less than 1%.

"I believe that the impact on inflation from the new support measures will be minimal," the Finance minister added.

Meanwhile, economists note that by adding fiscal support to the economy, the UK government has freed the central bank to focus on curbing a surge in consumer prices that threatens to savage the financial health of the most needy. In general, the new support measures announced by Sunak undoes some of the economic damage caused by the tax increases he introduced earlier this year on companies and workers. If the government is alive to the rise of recession, the central bank can get on with the job of tackling price increases.

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