Policing Minister Dame Diana Johnson has admitted that the next few months could be a "bumpy ride" following new data from the Office for National Statistics estimate that the rate of UK inflation rose from 2.5% in December to 3% in. Report by Faragt. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
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00:00I think the Bank of England said yesterday that it's going to be a bumpy ride and clearly
00:05we know that after 14 years of economic stagnation under the previous government, we've been
00:10in for seven months. It's not easy, the Chancellor is having to take some difficult decisions
00:15but what we do know is that interest rates over the last seven months have been reduced
00:20three times and we know that wages are now starting to increase after stagnating for
00:25some time. So there are some positives but it's clearly difficult and I fully acknowledge
00:29the cost of living crisis that families are still living with because of the previous
00:33government's disastrous budget under Liz Truss. Well, I think you only have to look back at
00:38the record of the previous Conservative government, 14 years, and as I say that disastrous budget
00:44under Liz Truss which completely caused the markets to crash. So I think we've been in
00:49for seven months, we're having to take some difficult decisions but I would point to the
00:53IMF who are saying that over the next few years the UK economy is going to be one of
00:58the fastest growing in Europe. Well look, there is a spending review that's taking place
01:03at the moment, there's a strategic review of defence which has been undertaken and we
01:10also had a commitment in our manifesto to 2.5% of GDP being spent on defence. So this
01:15is all to be decided but obviously we've inherited a really difficult position economically from
01:20the previous government but all those factors now have to be looked at and there'll be announcements
01:24in due course.