LONDON, July 18 Reuters Britain39;s government must focus on sound public finances and avoid further fuelling inflation by pumping up demand, new finance minister Nadhim Zahawi is due to say in his first major speech on Tuesday.

Zahawi will address the City of London39;s annual Mansion House dinner, where he is set to confirm a postBrexit reworking of financial regulation inherited from the European Union, including Solvency II insurance rules.

However, tackling inflation is a top priority alongside boosting longerterm growth, according to speech extracts provided ahead of the event.

That means delivering sound public finances to avoid pushing up demand still further, providing help for households as they deal with the worst price rises in over a generation, he says in his speech.

The country should feel confident that we can, and we will, get inflation back under control, the speech added.

Consumer price inflation hit a 40year high of 9.1 in May and the Bank of England forecasts it will exceed 11 in October, when regulated household energy prices are due to rise by 40.

Zahawi39;s message on public finances contrasts with that from some of the contenders in the Conservative leadership contest to succeed Prime Minister Boris Johnson.

Foreign Secretary Liz Truss has said she wants to reverse more than 30 billion pounds 36 billion of tax rises announced by rival leadership contender Rishi Sunak, whose resignation as finance minister two weeks ago helped trigger…