Supermarket price wars will limit the strain on household budgets this year, the Chancellor said on Thursday, as official figures cemented the UK’s position as the fastest growing major advanced economy in 2016.
Philip Hammond said the “incredible market share war” between supermarkets over the past few years would help to curb shop price rises and support consumer confidence, as he signalled that growth in 2017 could outpace official forecasts.
It came as data published by the Office for National Statistics showed the UK economy grew by 0.6pc in the final three months of 2016, matching the expansion in the previous quarter.
This is faster than the 0.5pc growth predicted by economists and compares with the Treasury’s dire predictions ahead of the EU referendum that a vote to leave the bloc would trigger a year-long recession.