Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the finding in the Bank for International Settlements' Annual Economic Report, published in June 2023, that some catch-up in wages would be compatible with inflation returning to target if firms accept a reduction in profits, if he will take steps to reduce the potential impact of corporate profit on levels of inflation.

UK inflation has been affected by global factors, including Russia’s invasion of Ukraine affecting energy and food prices. The UK is not alone in facing these challenges, advanced economies across the world are feeling the impact of inflation.

That is why halving inflation is one of the Prime Minister’s top priorities. Evidence that corporate profits play a role is inconclusive. The independent Competition and Markets Authority have authority to intervene if they find evidence of anti-competitive conduct or competition law is breached.