UK’s Hunt: OBR sees CPI of 9.1% in 2022 and 7.4% in 2023

UK Finance Minister Jeremy Hunt is presenting the Autumn Budget to parliament.

Key takeaways

“OBR sees CPI of 9.1% in 2022 (March forecast 7.4%).”

“OBR sees CPI of 7.4% in 2023 (March forecast 4.0%).”

“OBR sees GDP growth of 4.2% in 2022, -1.4% in 2023, +1.3% in 2024, +2.6% in 2025 and +2.7% in 2026.”

“Our priorities are stability, growth and public services.”

“Our plan also leads to a shallower downturn, higher long-term growth.”

“Inflation figures show we must continue relentless fight to bring it down, including important commitment to rebuild public finances.”

“OBR expects rise in unemployment from 3.6% today to 4.9% in 2024 before falling to 4.1%.”

“Two new fiscal rules: Underlying debt must fall as percentage of GDP by fifth year in rolling period. Second is public sector borrowing, over the same period, must be below 3% of GDP.”

“Today’s statement delivers a consolidation of £55 billion and means inflation and interest rates end up significantly lower.”

“In the short term, as growth slows and unemployment rises, we will use fiscal policy to support the economy.”