Climate ambition will protect UK households from volatile fossil fuel inflation, says IPPR

Pranesh Narayanan, research fellow at IPPR, said:

“Falling inflation today is broadly good news for the UK economy. This is a sure sign that the Bank of England should not increase interest rates tomorrow.

“However, rising fuel prices put upward pressure on inflation in August. OPEC, the fossil fuel cartel, caused this situation by deciding to cut supply and boost oil prices. This has increased the cost of living for UK households.

“This highlights one of the key economic benefits of the net zero transition at a time when the government is considering u-turns on key climate policies. A rapid shift to renewables and electric vehicles will vastly reduce the UK’s exposure to volatile fossil fuel markets, increase our energy security and give the UK more control over its own energy prices. Watering down our climate ambition now will have the opposite effect.”