Inflation remaining high brings little respite to families already making sacrifices on essentials

From: Think Tanks
Published: Wed Aug 16 2023

JRF Chief Economist Alfie Stirling responds to the latest inflation figures from the Office of National Statistics (ONS) today

“Any fall in the rate at which prices are increasing is welcome, but the reality is inflation of 6.8% will bring little respite to the 3.1 million low-income families with children already making sacrifices on essentials like food, basic toiletries, and adequate clothing.

"As inflation falls there is also a growing risk that policymakers take their eye off the ball. A total of 5.6 million low-income households owe more than £14 billion in unsecured lending like credit cards, overdrafts and personal loans. With interest rates continuing to rise, these families are exposed to a double pinch; first from the rising costs of essentials, and then from the rising cost of money itself.

“Government can and should be doing much more to protect living standards both now and for the future. This includes rebuilding the UK's social security system so that it reflects the actual cost of essentials, and investing in ways to reduce the UK's future exposure to price increases across the economic system, including through stronger public services, housing market reform and greater energy efficiency and security.”

Consumer price inflation, UK: July 2023

Company: Think Tanks

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