This content is not available in your region

UK's Johnson says inflation fears are unfounded

UK's Johnson says inflation fears are unfounded
UK's Johnson says inflation fears are unfounded   -   Copyright  Thomson Reuters 2021
By Reuters

LONDON – British Prime Minister Boris Johnson said on Tuesday that a recent jump in inflation would be solved by businesses following the laws of supply and demand as the economy “roars back to life” after its coronavirus lockdowns.

“People have been worried about inflation for a very long time. I’m looking at, robust economic growth. And by the way, those, those fears have been unfounded,” Johnson told Sky News.

He said Britain’s supply chains were “incredibly clever and robust” and a recent shortage of fuel caused by a lack of tanker truck drivers was easing.

“You’re going to see brilliant businesses, brilliant people making sure that we have the supplies that we need,” Johnson said in an interview on the sidelines of an annual conference of his Conservative Party.

Britain’s consumer price inflation rate leapt by the most on record in August to hit 3.2% and the Bank of England thinks it is on course to go above 4%, more than double its 2% target.

The BoE, like many other central banks around the world facing a jump in inflation in their economies, also thinks the rise will prove transitory.

Earlier on Tuesday, Johnson said Britain was not in an economic crisis due to the shortage of labour and the country was not facing a 1970s-style inflationary spiral.