Martin Lewis has issued an inflation warning today after Liz Truss made the front page of papers this morning with her cost of living crisis comments.
The Money Saving Expert was joined on Good Morning Britain today (September 5) by Andrew Pierce and Kevin Maguire to discuss the leadership race and who will likely become the next leader of the country. Liz Truss is expected to be the next Prime Minister and was interviewed on the BBC show Sunday with Laura Kuenssberg, the Liverpool Echo reports.
During the interview, Ms Truss tried to quell fears surrounding the cost of living crisis. She said: "Inflation is projected to peak, so we do know that inflation will come down."
Read more: 'Everyone is going to struggle apart from the rich' - concerns over how people will pay energy bills
Despite this, Mr Lewis responded to the comments, warning that it will not directly correlate with lowering prices. He said: "Inflation is predicted to peak. Inflation is not prices. Inflation is a rate at which prices change. If inflation goes down, it does not mean prices go down. It just means they stop going up as quickly.
"I will put it in really simple terms. If something cost £100 last year and costs £110 this year. If it goes up to £119 next year, then inflation has dropped."
It comes after the Bank of England said it expects inflation to hit 13.1 per cent this winter when the country will feel the full impact of skyrocketing energy bills. However, economists predict the peak could be even higher with US investment bank Citigroup estimating it could soar to 18 per cent.
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