UK PM Sunak sees “light at the end of the tunnel” on inflation

LONDON (Reuters) – British Prime Minister Rishi Sunak said there was “light at the end of the tunnel” for his government’s plan to halve inflation, adding that progress had been made despite record wage growth reported on Tuesday which could fuel future inflation pressure.

“The best way to be able to bring interest rates down and stop them going up is to bring inflation down,” Sunak told broadcasters.

Data on Wednesday is expected to show the headline rate of consumer price inflation dropped to 6.8% in July from 7.9% in June but core inflation probably weakened only marginally, according to a Reuters poll of economists.

“We are making progress,” Sunak said. “But it’s important that we stick to the plan. The plan is working. I think there is light at the end of the tunnel.”

(Reporting by William James and Alistair Smout; Editing by William Schomberg)