Inflation will fall this year and people can look forward to the future with confidence despite challenging economic times, Chancellor George Osborne said in a television interview on Thursday.

One thing you will see this year is a fall in prices, in the rate of inflation, he told ITV News, according to a transcript of the interview issued ahead of its broadcast.

(These are) challenging times but with the rate of inflation we hope starting to fall, the cuts in people's households electricity and gas bills there are some things going right as well, overall you can look to the future with a lot of confidence, he added.

Osborne said he wanted to see bonuses at the nationalised Royal Bank of Scotland very much lower than last year.

He added that he thought the euro would survive the eurozone's sovereign debt crisis, but said European countries needed to do more to help their economies grow.

(Reporting by Tim Castle; editing by Sarah Young)