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Treasury head Reeves has stated she is preparing "focused steps to address cost of living issues" in the upcoming Budget.

In comments to media outlets, she stated that reducing price rises is a collective task of both the government and the Bank of England.

The UK's inflation rate is forecast to be the highest among the G7 developed nations this calendar year and next.

Possible Energy Cost Measures

Reports indicate the government could take action to reduce energy bills, for instance by cutting the present 5% level of VAT charged on energy supplies.

Another option is to lower some of the policy costs currently included in bills.

Budgetary Constraints and Expert Expectations

The government will receive the latest report from the independent fiscal watchdog, the OBR, on the start of the week, which will reveal how much scope there is for these actions.

The consensus from most economists is that the Chancellor will have to declare higher taxes or spending cuts in order to meet her voluntary debt limits.

Previously on Thursday, estimates indicated there was a £22 billion shortfall for the Treasury chief to resolve, which is at the more modest range of forecasts.

"There's a collective job between the central bank and the government to continue tackling some of the sources of price increases," the Chancellor told the BBC in Washington, at the conferences of the IMF and World Bank.

Revenue Commitments and International Concerns

While a great deal of the focus has been on expected tax rises, the Treasury chief said the most recent data from the fiscal watchdog had not altered her commitment to manifesto promises not to increase rates on earnings tax, VAT or social security contributions.

She blamed an "uncertain world" with growing international and trade concerns for the fiscal revenue measures, likely to be targeted on those "with the broadest shoulders."

Global Trade Tensions

Referring to concerns about the UK's economic relations with the Asian nation she said: "Our security interests invariably come first."

Last week's statement by Chinese authorities to increase trade restrictions on rare earths and other materials that are crucial for high-technology manufacturing led US President the US President to propose an extra 100% tariff on imports from the Asian country, increasing the risk of an full-scale commercial conflict between the two global powers.

The US Treasury Secretary described China's action "economic coercion" and "a global supply chain control attempt."

Questioned on accepting the US offer to join its conflict with the Asian nation, Reeves said she was "extremely troubled" by Chinese actions and called on the Beijing authorities "to avoid restrictions and restrict access."

She said the action was "bad for the international commerce and creates additional challenges."

"In my view there are fields where we must challenge China, but there are also important opportunities to sell into China's economy, including financial services and other areas of the economic system. We've got to get that balance correct."

The chancellor also stated she was cooperating with international partners "on our own essential resources plan, so that we are more independent."

NHS Medicine Costs and Investment

The Chancellor also recognized that the price the NHS pays for medicines could increase as a consequence of ongoing talks with the Trump administration and its pharmaceutical firms, in return for reduced taxes and capital.

A number of the world's largest pharmaceutical manufacturers have said in recent statements that they are either delaying or scrapping projects in the United Kingdom, with several attributing the low prices they are receiving.

Recently, the Science Minister said the price the health service pays for medicines would need to increase to prevent companies and pharmaceutical investment departing from the United Kingdom.

Reeves stated to media: "We have seen as a result of the cost structure, that medical research, recent pharmaceuticals have not been available in the United Kingdom in the manner that they are in other European countries."

"Our aim is to make sure that individuals getting treatment from the National Health Service are can access the best critical drugs in the globe. And so we are looking at all of that, and... aiming to attract more capital into Britain."