The chancellor's Budget could reduce inflation by 0.5% next year, a Bank of England deputy governor has said.
Clare Lombardelli told the Commons' Treasury committee that measures announced by Rachel Reeves in November will slow the rate at which prices are increasing from April 2026.
Speaking to MPs, Ms Lombardelli said capping fuel duty, cutting energy prices and freezing rail fares would bear down on price increases.
Official forecaster the Office for Budget Responsibility (OBR) has said the measures in Reeves' Budget will reduce inflation by 0.4%.
UK inflation currently stands at 3.5%, with OBR forecasts suggesting it will drop to 2.5% next year, before returning to the Bank of England's 2% target from 2027.