Chancellor Rachel Reeves has announced she is preparing "focused steps to address cost of living challenges" in next month's Budget.
Speaking to the BBC, she stated that curbing price rises is a shared task of both the administration and the central bank.
The United Kingdom's price growth is expected to be the highest among the G7 industrialized countries this year and the following year.
Possible Energy Cost Measures
Reports indicate the government could intervene to bring down utility costs, for example by slashing the current 5% rate of VAT charged on energy supplies.
Another option is to reduce some of the policy costs presently added to bills.
Budgetary Limitations and Expert Predictions
The government will obtain the next report from the official forecaster, the OBR, on the start of the week, which will show how much space there is for such actions.
The consensus from the majority of analysts is that the Chancellor will have to announce tax increases or budget cuts in order to meet her declared debt limits.
Earlier on the same day, calculations indicated there was a £22 billion shortfall for the Treasury chief to fill, which is at the lower end of forecasts.
"There's a collective responsibility between the Bank of England and the administration to continue tackling some of the causes of price increases," the Chancellor stated to the BBC in Washington, at the annual meetings of the International Monetary Fund and global financial institution.
Tax Commitments and International Concerns
While much of the focus has been on probable tax rises, the Treasury chief said the most recent figures from the fiscal watchdog had not changed her pledge to campaign commitments not to increase tax levels on earnings tax, VAT or National Insurance.
She attributed an "unpredictable global environment" with rising international and commercial concerns for the Budget revenue measures, probably to be focused on those "most able to pay."
International Trade Tensions
Addressing worries about the United Kingdom's economic relations with China she said: "Our security interests always take priority."
Last week's statement by Chinese authorities to tighten trade restrictions on critical minerals and other materials that are key for high-technology manufacturing led American leader Donald Trump to propose an further 100% import tax on imports from China, raising the prospect of an full-scale trade war between the two economic giants.
The American finance chief labeled the Chinese decision "commercial pressure" and "a global supply chain control attempt."
Questioned on considering the American proposal to join its conflict with China, the Chancellor said she was "deeply worried" by China's actions and urged the Beijing authorities "not to put up barriers and restrict access."
She said the decision was "damaging for the international commerce and causes further headwinds."
"I believe there are areas where we need to confront China, but there are also significant opportunities to export to Chinese markets, including banking sector and other areas of the economic system. We've got to get that equilibrium right."
The Treasury chief also stated she was collaborating with other major economies "regarding our own critical minerals strategy, so that we are reduced dependence."
Health Service Drug Costs and Investment
The Chancellor also acknowledged that the price the National Health Service pays for medicines could increase as a consequence of current talks with the US government and its drugs companies, in exchange for lower tariffs and investment.
A number of the biggest global pharmaceutical manufacturers have said lately that they are either halting or scrapping investments in the UK, with several blaming the low prices they are receiving.
Recently, the Science Minister said the price the health service pays for medicines would need to rise to halt businesses and pharmaceutical investment departing from the UK.
The Chancellor told the BBC: "It has been observed because of the payment system, that medical research, innovative medicines have not been offered in the United Kingdom in the way that they are in other continental states."
"We want to ensure that people receiving care from the NHS are can receive the top life-saving medicines in the world. And so we are looking at all of that, and... looking to obtain increased investment into Britain."
