Inflation is now 2% and on target, while economic growth is 2.5% - again on target, Gordon Brown has announced.
He said even with economic crises around the world, Britain's economy had proved "resilient, robust and prudent".
He promised "no return to boom and bust" and predicted that public pay would on average rise 2.25% in the next year, while economic growth would rise to 2.75% to 3.25% for 2007/08.
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