London:Higher energy prices fueled by the conflict in the Middle East are exerting upward pressure on UK inflation, British Chancellor of the Exchequer John Healey cautioned on Wednesday.

According to Anadolu Agency – English, Healey communicated these concerns in a letter outlining the annual remit for the Bank of England's Monetary Policy Committee to Governor Andrew Bailey, emphasizing the importance of monetary policy in supporting households and businesses by sustainably returning inflation to its 2% target in the medium term.

Healey highlighted that the Monetary Policy Committee holds the primary responsibility for guiding inflation back to target levels. However, he noted that the government's fiscal strategies also play a role by reducing borrowing over time and alleviating inflationary pressures.

The chancellor underscored the necessity of low and stable inflation for long-term economic growth and improved living standards, which in turn reduce uncertainty and help lower costs for consumers and businesses.

Furthermore, Healey confirmed that the central bank's Asset Purchase Facility will continue for the 2027-28 financial year and beyond as required, adhering to the multiyear strategy established by policymakers on September 17.

Healey reiterated the government's complete support for the committee's operational independence, affirming that the symmetric 2% inflation target, measured by the 12-month increase in the Consumer Prices Index, remains constantly applicable.