Osborne Backs King, Says U.K. Inflation Surge Is ‘Temporary’

Chancellor of the Exchequer George Osborne said the Bank of England is right to support the U.K.’s economic recovery by looking beyond quicker inflation to maintain interest rates at a record low.

The Treasury’s effort to reduce the deficit in part by increasing value-added tax has added to consumer prices and the central bank should focus on price stability further in the future, Osborne said.