According to data released by the UK's National Office for Statistics, its CPI in June rose 9.4% year-on-year, a record high.

[Text/Observer Network Wang Mochu]

According to multiple foreign media reports, on Tuesday (19th), local time, Nadhim Zahawi will guarantee in his first speech as the newly appointed British Chancellor of the Exchequer that he will control the current high inflation of . In addition, his priorities include confirming the UK's revision of financial regulations after Brexit.

However, the situation facing Zahavi is very serious. According to data released by the UK's National Office for Statistics, its CPI in June rose 9.4% year-on-year, a record high after the growth of the Consumer Price Index (CPI) in May reached 9.1%.

The new British Chancellor of the Exchequer Nadhim Zahawi, pictured from Reuters

Hazawi: Confidence to bring inflation back to control

According to foreign media reports such as Reuters, " Financial Times " and other foreign media reports, Nadim Zahawi delivered his first important speech as the newly appointed British Chancellor of the Exchequer on Tuesday (19th) local time. Summary of the speech disclosed before the speech revealed that his top priorities include addressing inflation and creating conditions for the recovery of the private sector and the "post-Brexit Vision" of the financial services industry. The disclosed speech read, "The state should have confidence because we can bring inflation back under control."

It is worth noting that Zahavi ruled out the possibility of borrowing money to reduce taxes, which means he will continue to implement the fiscal policy of former Chancellor Rishi Sunak.

Former British Chancellor Rishi Sunak, pictured from AP

It is reported that Sunak resigned earlier this month in protest of the outgoing Prime Minister Boris Johnson's leadership style. Especially Johnson insists on reducing taxes, and Sunak holds a different view on this.

After Sunak resigned, Zahavi was quickly called to take over his post, but he still stuck to the former Finance Minister's thinking, insisting that Britain should curb inflation before considering tax cuts.

In addition, Zahavi will continue Sunak's fiscal policy in comprehensively reforming urban supervision. The summary of the

speech shows that Zahavi will promise to “repeal hundreds of reserved EU laws and replace them with a coherent and flexible approach to financial regulation that suits us”.

According to Bloomberg, the UK government is currently considering giving ministers the power to overturn financial regulators' decisions, a move that would overturn rules governing London and spark tensions with Bank of England .

However, Zahavi said that he has not made a final decision on this. And he confirmed that the 'call-in' powers were not included in the forthcoming Financial Services and Markets Bill.

The bill will be released on Wednesday (20th), which includes an overview of the new plan and a series of specific measures. At present, the bill has attracted the attention of regulators, opposition politicians and academic circles.

In addition, earlier on Tuesday, the UK government announced a salary increase of about 4% to 5% for more than 2 million public sector staff. This increase is higher than the historical increase in recent years, but is still far lower than the current consumer price inflation rate of more than 9%. Zahavi explained that the public sector pay raise will not fuel inflation.

Although Hazavi confidently declared that "we can bring inflation back under control", the situation he faced can be said to be very serious.

It is worth noting that Zahavi was the Chancellor of the Exchequer only 2 weeks ago and admitted that his term may be "only a few months". Because no matter who replaces Johnson as the new British Prime Minister on September 5, it is possible to appoint a new Chancellor of the Exchequer.

6 CPI rose 9.4% year-on-year, setting a record high

According to data released by the UK's National Office for Statistics, the UK's inflation rate has hit a 40-year high. After the UK Consumer Price Index (CPI) growth reached 9.1% in May, its CPI in June rose 9.4% year-on-year, a record high. Although the UK government has taken a series of hikes in , the data is still predicted to exceed 11% in October.

Since December, the UK has raised the benchmark rate by 5 times to 1.25%, with the money market priced at 3% by the end of the year. And the latest data show that there are further signs that inflation pressures are growing at the overall sales level higher than economists have expected.

Among them, in the year ended June, raw material costs soared 24%, reaching the highest since 1985; manufacturers responded by raising their prices by 16.5%, which also reached the highest since 1977.

Producer ex-factory prices and input prices rose and fell year-on-year. Bloomberg quoted data from the UK's National Office for Statistics

Bloomberg quoted economic analysts as saying that due to the rise in food and energy prices, the UK's total inflation rate this year is unlikely to drop below 9%, and it is possible to enter double digits in the winter.

According to data released by the UK's Office of National Statistics (ONS) on the 19th, as food and energy prices soar, the British are struggling to cope with the largest drop in wages in 20 years. The British Central Bank predicts that British disposable income will see the second largest decline in record time this year since 1964.

Data released by British market research group Kantar said that as of July 10, the British grocery bill reached an inflation rate of 9.9% in four weeks, which means that on average, every British will spend an extra 454 pounds on food and necessities this year (about 3,678 yuan). Fraser McKevitt, director of the research institute, further warned that "it is possible that it will also surpass the previous high in August."

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