Jeremy Hunt has said he is comfortable with Britain falling into a recession if it is necessary to defeat inflation, days after the IMF said Britain would avoid a downturn.

The Chancellor said he would back the Bank of England in raising interest rates further, as he insisted that the “only path to sustainable growth” is to bring down the high prices behind the cost of living crisis.

The Bank has been increasing interest rates as a way to tackle inflation, but markets predict they could rise as high as 5.5pc this year from the 4.5pc where they currently stand.

Though down from 10.1pc, inflation remains stubbornly high at 8.7pc, with core inflation at its highest since 1992 and food remaining alarmingly expensive.