Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department has had discussions with the Bank of England on incorporating the impact of climate change in inflation modelling.

The Treasury meet with the Bank of England regularly to discuss their assessment of the economy, inflation and the impact of shocks and structural trends, including climate change.

The Office for Budget Responsibility (OBR) is the government’s official forecaster. They published their latest assessment of the economic and fiscal outlook (EFO) which includes inflation on 6th March. The Fiscal risks and sustainability report, published in July 2023, included discussion of the long-term impact of climate change on the fiscal position.

The Bank of England has operational independence over monetary policy and publishes its own forecasts, including for inflation, in its quarterly Monetary Policy Report.