LONDON, (Reuters) – Inflationary pressures can be caused by a tight labor force and an energy shock, Britain’s finance minister Rishi Sonak claimed on Friday. He added that he is confident in Britain’s overall economic outlook.

Sunak said that both inflation pressures stemming from a tight labour market (although this is something to celebrate), and also the shock caused by rising energy prices was what Sunak shared with BBC Radio 4.

“I feel very positive about the prospects of our economy over the long-term.”