Treasury head Rachel Reeves has announced she is preparing "specific action to tackle cost of living challenges" in next month's Budget.
In comments to the BBC, she emphasized that curbing price rises is a shared task of both the administration and the central bank.
The UK's inflation rate is forecast to be the highest among the Group of Seven developed nations this year and next.
Sources suggest the government could take action to bring down utility costs, for example by cutting the present 5% rate of VAT applied on energy.
Another option is to lower some of the government charges currently added to household expenses.
The government will obtain the next assessment from the official forecaster, the Office for Budget Responsibility, on the start of the week, which will clarify how much space there is for these actions.
The view from most experts is that the Chancellor will have to introduce higher taxes or expenditure reductions in order to fulfill her declared debt limits.
Previously on the same day, estimates suggested there was a £22 billion gap for the Treasury chief to fill, which is at the more modest range of projections.
"It is a collective task between the Bank of England and the administration to bear down further on some of the sources of price increases," the Chancellor informed the BBC in Washington, at the annual meetings of the IMF and global financial institution.
While a great deal of the attention has been on expected tax rises, the Treasury chief said the latest data from the fiscal watchdog had not changed her commitment to election pledges not to raise rates on income tax, sales tax or National Insurance.
She blamed an "uncertain world" with rising geopolitical and commercial tensions for the fiscal tax moves, likely to be targeted on those "wealthiest."
Commenting on concerns about the United Kingdom's economic relations with China she said: "Our national security invariably take priority."
Recent statement by China to strengthen trade restrictions on critical minerals and other materials that are crucial for high-technology manufacturing led US President Donald Trump to suggest an extra 100% tariff on goods from the Asian country, raising the risk of an full-scale trade war between the two global powers.
The American finance chief called China's decision "commercial pressure" and "a international production power grab."
Asked about accepting the US offer to participate in its dispute with the Asian nation, the Chancellor said she was "very concerned" by China's measures and encouraged the Beijing authorities "not to put up barriers and restrict access."
She said the move was "bad for the global economy and creates additional challenges."
"It is my opinion there are areas where we must address China, but there are also important chances to sell into Chinese markets, including banking sector and other sectors of the economic system. We've got to get that balance right."
The chancellor also stated she was cooperating with other major economies "regarding our own essential resources strategy, so that we are reduced dependence."
The Chancellor also admitted that the price the NHS spends on drugs could increase as a consequence of current discussions with the Trump administration and its drugs companies, in exchange for lower tariffs and capital.
A number of the world's largest pharmaceutical manufacturers have said lately that they are either pausing or scrapping operations in the UK, with several blaming the modest returns they are obtaining.
Recently, the Science Minister said the cost the health service spends on drugs would have to rise to stop firms and pharmaceutical investment leaving the United Kingdom.
The Chancellor informed the BBC: "It has been observed as a result of the pricing regime, that clinical trials, innovative medicines have not been provided in the United Kingdom in the manner that they are in other EU nations."
"Our aim is to ensure that people getting care from the National Health Service are able to access the top critical drugs in the globe. And so we are examining this situation, and... looking to secure increased investment into Britain."
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