Jeremy Hunt has shared a video in which he tries to explain inflation by using coffee cups.
UK inflation eased back last month but food prices hit a 45-year high.
In the video he orders a flat white and holds two coffee cups, one labelled £2.56 and the other £2.86.
HM Treasury
The Office for National Statistics (ONS) said the rate of Consumer Prices Index (CPI) inflation fell to 10.5 per cent in December from 10.7 per cent, suggesting the cost-of-living crisis may have passed its peak.
Now, in an attempt to explain why the UK is facing such high inflation, the Chancellor posted a video onto his social media.
In the video he orders a flat white and holds two coffee cups, one labelled £2.56 and the other £2.86.
He proceeds to explain why there has been an increase in price and what the Government is doing to halve it and grow the economy.
He listed some of the factors contributing to inflation which is “about 10 per cent” included the supply chain squeeze as a result of the pandemic, the war in Ukraine and high energy prices as a result of Russian sanctions.
He adds, that high inflation means “unemployment going up, businesses failing, the pound in your pocket is worth less than it used to be”.
People were quick to share their disapproval of the video, with some Twitter users calling the Chancellor “patronising”.
Jack Mason replied: “I just find these videos a little patronising. I mean I understand it but I feel like my dad is telling me why I can’t have a new pair of football boots.”
Paul Duerinckx said: “This new Mister Bean film looks terrible.”
Liam Halligan slammed the Government for the video.
GB News
GB News’ Economics and Business editor Liam Halligan also criticised the video.
He joined Mark Longhurst to share his dismay: “It’s all a jolly game isn’t it for the politicians isn’t it? Meanwhile people are frightened about if they can buy their kid shoes? Can they buy a school uniform? Can they pay a soaring electricity bill?
He continued: “Some parts of the Chancellor’s video were a little bit disingenuous.
“He talked about inflation stemming from lockdown - yes, that’s true. Supply chain problems, a big wall of pent up demand that pushed prices.
“He talked about price rises stemming from the war in Ukraine, absolutely. Even though we were already at a 30-year-high for inflation in January last year which was before the war in Ukraine.
“What he didn’t mention was quantitative easing. A rather tongue-tied term to describe when the Bank of England basically conjures up lots of money from nowhere and puts it into the system. Basically buying bonds, financing Government spending.
“They’d deny that, they’d deny that but it is the undeniable impact of quantitative easing. That money goes into the system, inflation as economic textbooks will tell you is too much money chasing too few goods.
“If you increase the amount of money as the Bank of England has enormously, you will get inflation.
“I would like to see our political media class, talking a lot more about the implications of that massive expansion.”
