Rishi Sunak Defends Strategy to Tackle Inflation in Exclusive ITV News Interview

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Summary:

  • Rishi Sunak defends his strategy to tackle inflation in an exclusive interview with ITV News, stressing responsible borrowing.
  • Sunak acknowledges the role of the government in curbing inflation and highlights the potential negative impact of excessive borrowing on long-term economic stability.
  • Sunak discusses the effects of interest rate rises and emphasizes the importance of sustainable pay increases tied to productivity growth.
  • Sunak confirms the government's commitment to the triple lock policy for pensions and expresses his intent to support individuals facing inflation-related pressures.
  • Sunak addresses calls for a net zero referendum, advocating for a measured and pragmatic approach to environmental goals.
  • Despite challenges, Sunak notes progress in combating inflation and reiterates the collective commitment to achieving economic stability.


The Prime Minister's target of reducing inflation to around 5.3% by the year-end remains a challenge. In an exclusive interview with ITV News, Rishi Sunak discussed his approach to addressing inflation, emphasizing the need for responsible borrowing to avoid long-term economic pain.


Rishi Sunak's Inflation Strategy

Speaking to ITV News, Rishi Sunak defended his strategy to combat inflation, acknowledging that while higher borrowing might offer short-term relief, it could lead to prolonged economic difficulties. He stressed the importance of responsible fiscal measures to ensure stable prices and mortgage rates over the long term. Sunak emphasized that although inflation has slightly decreased, core services inflation is on the rise due to factors such as energy prices and food price fluctuations.

Government Role in Inflation

Sunak asserted that the government has a role in curbing inflation and needs to exercise caution in its borrowing practices. He highlighted that excessive borrowing could result in sustained high prices and mortgage rates, ultimately impacting the economy. Sunak expressed his commitment to avoid such an approach.

Interest Rates and Pay Rises

Addressing the impact of recent interest rate rises, Sunak acknowledged that there is a time lag between rate decisions and their economic effects. He commented on record pay rises reported by the Office for National Statistics and emphasized the importance of sustainable pay increases tied to productivity growth.

Triple Lock and Pension Rises

Regarding the state pension, Sunak confirmed the government's commitment to the triple lock policy. He acknowledged that pensions could potentially rise by 8% based on wage trends, expressing his intent to support individuals facing inflation-related pressures.

Net Zero and Climate Change

Sunak addressed calls for a referendum on the net zero target for 2050, asserting his dedication to achieving net zero emissions. He stressed the need for a measured and pragmatic approach to ensure widespread support and successful progress toward environmental goals.

Moving Forward

Although inflation remains a concern, Sunak noted positive movement in the right direction. He highlighted the challenges ahead and the collective commitment to achieving a stable economic environment.

Robert Peston, reporting for ITV News in Leicester.


In this exclusive interview, Rishi Sunak discussed his stance on inflation, responsible borrowing, and environmental goals, emphasizing the need for a cautious yet purposeful approach to these pressing issues.

Location: London, UK

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