Consumer prices index inflation stuck at 8.7 per cent, data shows.
Working people need a credible plan from the government to their standard of living. The latest inflation figures showed that households can expect further misery.
What does the statistics show?
Consumer prices index (CPI) inflation remained at 8.7% in May compared with the predicted drop of 8.4%, according to the Office for National Statistics. CPI including housing costs rose to 7.9% from April. The figure showcases that an average shopping bill would cost £108.70.
What are the items of high price?
Sugar, oilve oil, cheese and curd, pasta and fish are among the items hit by soaring prices in May. With sugar inflation at 49.8%. Experts have interpreted that the inflation figure will heap and creating extra financial pressure on households, and that those with mortgages are likely to face rising interest rates as a result.
What will be the impact?
The news is likely to put more pressure on interest rates too. With the bank of England expected to meet tomorrow, exemplifying that those with mortgages or debit could face more pressures in their repayments. Economist Karen Ward, who advises Chancellor Jeremy Hunt, claimed that the Bank has to “create a recession” to force large numbers into unemployment. to control inflation and interrupt a so-called wage-price spiral where companies put prices up, forcing workers to ask for pay rises, which means companies increase prices further to pay for those new salaries.
Pushing interest rates so high that the economy is driven into recession will only make the current crisis worse. What working people need is a credible plan for sustainable growth, to get living standards and public finances back on track.
Impact on People
Across the country, people are paying the price for the government’s failure to invest in our essential infrastructure and the UK’s fatal embrace of a low wage and low investment economic model. Unite general secretary Sharon Graham said that “in the real world of workers and their families” people continue to feel the pain of their wages trailing behind escalating prices.
Labour leader Sir Keir Starmer told Commons that the government is responsible for economic vandalism. He acknowledged inflation was “putting pressure on family budgets” but argued his administration had taken “decisive action” to support people.
