Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential implications for her policies of the statement by the Governor of the Bank of England's that recent experience of high inflation may make households and businesses more sensitive to a new inflationary shock.

Low and stable inflation is vital for growth and investment. The independent Monetary Policy Committee (MPC) at the Bank of England are responsible monetary policy, and the MPC has the government’s full support as it acts to return inflation to target sustainably.

The most important thing the government can do to bring down inflation is to get borrowing down and stick to our fiscal rules. We have already reduced borrowing by nearly 1% of GDP in the last year and we are set to reduce borrowing faster than any other G7 country by 2030.

We have also supported the MPC by directly bearing down on prices. Action taken at the Budget will reduce inflation by 0.4ppt in 2026-27, through measures on energy bills, transport costs and fuel duty.