The former chancellor has tried to project his financial nous and attention to detail as reasons the public can trust him to bring down both price growth and the Bank of England’s base rate.
Mr Sunak made his primary pledge at the start of 2023 to “halve inflation” from just over 10% to around 5% by the end of the year.
Speaking from the warehouse, Mr Sunak said: “Yesterday you would have heard some news about inflation, today you may have seen what the Bank of England has announced with interest rates.
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“I’m sure that actually fills many of you with some anxiety and some concern about what’s going on and what that means for you and your families.
“I’m here to tell you that I am totally, 100%, on it and it’s going to be OK and we are going to get through this.”
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Asked by Sky News if he accepted that his approach to the economy – keeping public pay low, shying away from tax cuts and promising to halve inflation – would hurt his electoral chances, Mr Sunak remained stoic.
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How will we control inflation?
He said that meeting his target has “of course” got harder, “but it’s certainly not impossible”.
The prime minister said that public will be able to judge him in “six months, nine months, a year” on how he is doing and whether the economy is healthier.
Earlier in the day, he said that halving inflation by the end of year is “hard but not impossible”.
Mr Sunak was speaking to the Times CEO summit shortly after the surprise hiking of interest rate.
Mr Sunak said: “Clearly what’s happened in the last couple of months makes that harder, of course it does. That goes without saying. But I’ve always said this would be hard.
“It’s clearly become more challenging and it’s clearly become harder, but it’s not impossible and we’re throwing absolutely everything at it, and that’s what I’m doing.”
He said earlier that “clearly it’s got harder over the past few months” to bring down inflation.
Interest rates are set by the bank independently of the government and impact the cost of borrowing money, while inflation charts how quickly prices are rising.
Speaking to journalists during the daily briefing, the prime minister’s spokesman said Mr Bailey still had Rishi Sunak’s support.
He was repeatedly asked if the central bank chief was doing a good job in tackling inflation, but did not respond in the affirmative.
This took place shortly before the surprise interest rate hike.
The Number 10 spokesman said: “The prime minister thinks it is important that we continue to support the bank in the work they are doing.
“You’re aware that there’s an independent process for setting interest rates, and we continue to work closely with them and work well with them to bring down inflation.”
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Donald Trump has threatened sweeping new tariffs on Mexico, Canada and China on his first day in office.
The president-elect, who takes office on 20 January next year, said he would introduce a 25% tax on all products entering the country from Canada and Mexico.
Posting on his Truth Social platform he also threatened an additional 10% tariff on goods from China on top of any he might impose as one of his first executive orders.
If implemented, the tariffs could raise prices for ordinary American consumers on everything from petrol to cars and agricultural products.
The US is the largest importer of goods worldwide and Mexico, China and Canada are its top three suppliers according to the country’s census data.
More than 83% of exports from Mexico went to the US in 2023 and 75% of Canadian exports go to the country.
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“On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders,” Mr Trump said.
He also spoke against an influx of illegal immigrants heading into the country.
While migrant arrests reached a record high during President Joe Biden’s administration, illegal crossings fell dramatically this year as new border restrictions were introduced and Mexico stepped up enforcement.
Mr Trump added: “Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. We hereby demand that they use this power… and until such time that they do, it is time for them to pay a very big price!”
After issuing his tariff threat, Mr Trump spoke with Canadian Prime Minister Justin Trudeau and they were said to have discussed trade and border security.
“It was a good discussion and they will stay in touch,” a Canadian source said.
Turning to China, the president-elect said he “had many talks with China about the massive amounts of drugs, in particular Fentanyl, being sent into the United States – But to no avail”.
“Until such time as they stop, we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America,” he wrote.
The Chinese Embassy in Washington said there would be losers on all sides if there is a trade war.
“China-US economic and trade cooperation is mutually beneficial in nature,” embassy spokesman Liu Pengyu posted on X. “No one will win a trade war or a tariff war.”
It is not clear if Mr Trump will actually go through with the threats.
He won the recent election in part due to voter frustration over inflation and high prices.
Mr Trump’s nominee for treasury secretary Scott Bessent – who if confirmed, would be one of a number of officials responsible for tariffs – has said previously that tariffs are a means of negotiation.
Conor McGregor has spoken out after losing a civil rape case as a feminist march was held in Dublin.
The MMA fighter was accused of raping Nikita Hand, who was awarded €248,603 (£206,000) in damages on Friday after a jury at Dublin’s High Court found McGregor assaulted her in a Dublin hotel in 2018.
Posting on social media, the 36-year-old said: “I know I made mistakes”.
It comes as hundreds of people in Dublin staged a demonstration in “utter solidarity” with Ms Hand.
Posting on X, McGregor said: “People want to hear from me, I needed time. I know I made mistakes. Six years ago, I should have never responded to her outreaches. I should have shut the party down. I should never have stepped out on the woman I love the most in the world. That’s all on me.
“As much as I regret it, everything that happened that night was consensual and all the witnesses present swore to that under oath. I have instructed my legal team to appeal the decision.
“I can’t go back and I will move forward. I am beyond grateful to my family, friends and supporters all over the world who have stayed by my side.
“That’s it. No more. Getting back to the gym- the fight game awaits!”
Speaking outside court after the decision, an emotional Ms Hand said the two-week-long civil case had been a “nightmare” but that “justice has been served”.
“It’s something that I’ll never forget for the rest of my life,” she added.
In Dublin on Monday night, a march in support of Ms Hand was organised by the socialist feminist movement group Rosa to mark the International Day for the Elimination of Violence against Women.
Participants chanted “stand with Nikita” and “no more fear, no more shaming, we reject your victim blaming” as they carried signs and banners through the capital’s streets.
Ruth Coppinger, a councillor and general election candidate, and Natasha O’Brien, who became a public figure after a soldier received a suspended sentence for assaulting her, both spoke at the event.
Ms Coppinger said Ms Hand was “an incredibly brave woman” and that she was watching the event via a live stream.
Ms O’Brien was cheered as she said she’d been “in awe” of Ms Hand’s courage and that Ireland had let out a collective “sigh of relief” after the jury found in Ms Hand’s favour.
McGregor was accused of having “brutally raped and battered” Ms Hand.
She was taken in an ambulance to the Rotunda Hospital the following day where the paramedic who assessed her told the court she had not seen “someone so bruised” in a long time.
Following eight days of evidence, and three days of closing speeches and the judge’s instructions to the jury, the jury of eight women and four men spent six hours and ten minutes deliberating before returning their verdict.
Twelve British soldiers were injured in a major traffic pile-up in Estonia, close to the border with Russia, local media have reported.
Eight of the troops – part of a major NATO mission to deter Russian aggression – were airlifted back to the UK for hospital treatment on Sunday after the incident, which happened in snowy conditions on Friday, it is understood.
Five of these personnel have since been discharged with three still being kept in the military wing of the Queen Elizabeth Hospital in Birmingham.
The crash happened at an intersection at around 5pm on Friday when the troops were travelling in three minibuses back to their base at Tapa.
Two civilian cars, driven by Estonians, are thought to have collided, triggering a chain reaction, with four other vehicles – comprising the three army Toyota minibuses and a third civilian car – piling into each other.
According to local media reports, the cars that initially collided were a Volvo S80, driven by a 37-year-old woman and a BMW 530D, driven by a 62-year-old woman.
The Estonian Postimees news site reported that 12 British soldiers were injured as well as five civilians. They were all taken to hospital by ambulance.
The British troops are serving in Estonia as part of Operation Cabrit, the UK’s contribution to NATO’s “enhanced forward presence” mission, which spans nations across the alliance’s eastern flank and is designed to deter attacks from Russia.
Around 900 British troops are deployed in Estonia, including a unit of Challenger 2 tanks.
A spokesperson for the Ministry of Defence said: “Several British soldiers deployed on Operation CABRIT in Estonia were injured in a road traffic incident last Friday, 22nd November.
“Following hospital treatment in Estonia, eight personnel were flown back to the UK on an RAF C-17 for further treatment.
“Five have since been discharged and three are being cared for at the Royal Centre for Defence Medicine, Queen Elizabeth Hospital Birmingham. We wish them all a speedy recovery.”
Defence Secretary John Healey said: “Following the road traffic incident involving British personnel in Estonia, my thoughts are with all those affected, and I wish those injured a full, swift recovery.
“Thanks to the Royal Centre for Defence Medicine at Queen Elizabeth Hospital Birmingham for their excellent care.”