Jeremy Hunt blamed the ‘drag anchor’ of inflation right now after the UK economic system slipped into the crimson.
Official figures confirmed GDP dipped 0.1 per cent in Might, which means that exercise successfully flatlined over the previous three months.
Though the autumn was not as dangerous as analysts had anticipated, it underlines the specter of ‘Stagflation’ – rising costs and no progress.
Mr Hunt insisted that the additional Financial institution Vacation for the Coronation held the numbers down.
However he warned that ‘excessive inflation stays a drag anchor on financial progress’.
‘One of the best ways to get progress going once more and ease the strain on households is to carry inflation down as shortly as potential. Our plan will work, however we should persist with it,’ he stated.
Official figures confirmed GDP dipped 0.1 per cent in Might, which means that exercise successfully flatlined over the previous three months
Director of Financial Statistics Darren Morgan stated: ‘GDP fell barely as manufacturing, vitality technology and building all fell again with some industries impacted by one fewer working day than regular.
‘In the meantime, regardless of the Coronation Financial institution Vacation, pubs and bars noticed gross sales fall after a powerful April.
‘Employment businesses additionally noticed one other poor month. ‘Nevertheless, companies have been flat general with well being recovering, with much less influence from strikes than within the earlier month, and IT additionally had a powerful month.
‘Throughout the final three months as an entire the economic system confirmed no progress.’
Suren Thiru, Economics Director at ICAEW, stated: ‘This knowledge confirms that the economic system was floundering even earlier than the influence of latest rate of interest rises are totally felt as the additional financial institution vacation for the Coronation curbed output in Might.
‘Whereas the economic system could rebound in June, the numerous squeeze on exercise from excessive inflation, stealth tax hikes and rising rates of interest means the Prime Minister could wrestle to satisfy his pledge to get the economic system rising.
‘These GDP figures are unlikely to stop one other price rise in August. Nevertheless, given the very long time lag between price rises and its impact on the true economic system, tightening additional dangers damaging our progress prospects by overcorrecting for previous errors.’
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