Inflation set to fall below 2% ‘in next few months’

Inflation is set to fall below 2% in the next few months, according to the latest forecast from the Office for Budget and Responsibility (OBR).

In his Budget speech today (6 March), chancellor Jeremy Hunt said this was “nearly a year ahead” of what was previously forecast in the Autumn Statement.

The government’s initial target was 2%.

Hunt also praised the Conservative government for continuing to bring inflation down, saying it was 11% when he came into office and ” now we have more than halved that to 4%”.

He added: “That did not happen by accident.”

Hunt said he recognised that tackling inflation was “painful” as it involved raising interest rates, but added: “A conservative government working with the Bank of England will always put sound money first.”