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Most of inflation jump is likely to be transitory, UK's Sunak says

Most of inflation jump is likely to be transitory, UK's Sunak says
Most of inflation jump is likely to be transitory, UK's Sunak says   -   Copyright  Thomson Reuters 2021
By Reuters

MANCHESTER, England – British finance minister Rishi Sunak said most of the pressures pushing up inflation were likely to be transitory, echoing comments earlier on Tuesday by Prime Minister Boris Johnson.

“The working assumption is that most of the pressures that we’re seeing at the moment are transitory in nature, they’ll work their way through the system,” Sunak said at an event on the sidelines of the governing Conservative Party’s annual conference.

“There is a strong argument that those things will pass through the system over the course of the next three, six, nine, 12 months depending on the particular part that you’re looking at.”

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 COVID-19 lockdowns.