The ONS has today published its inflation figures for April
Chancellor of the Exchequer, Said:
"I am disappointed with these figures because I know cost of
living pressures are still weighing down on working people.
"We are long way from the double digit inflation we saw under the
previous administration, but I'm determined that we go further
and faster to put more money in people's pockets.
"That's why we have increased the minimum wage for millions of
working people, frozen fuel duty to protect commuters and struck
three trade deals in the past two weeks that will go towards
cutting bills."
Conservative response to CPI Inflation
Figures
MP, Shadow Chancellor of the Exchequer, said:
"This morning's news that inflation is up – and now well above
the 2% target – is worrying for families.
"We left Labour with inflation bang on target, but Labour's
economic mismanagement is pushing up the cost of living for
families - on top of the £3,500 hit to households from the
Chancellor's damaging Jobs Tax. Higher inflation could also mean
interest rates stay higher for longer, hitting family finances
hard.
"Families are paying the price for the Labour Chancellor's
choices.”
ENDS
Notes to Editors:
Labour inherited inflation at the Bank of England's
target:
-
Labour inherited inflation at 2.0 per cent.
Having inherited inflation bang on the 2.0 per cent target,
inflation has increased above the Bank of England's target, on
Labour's watch (ONS, Consumer price inflation, UK: January
2025, 18 February 2025, link).
The Bank of England forecast the rate of inflation to
rise higher, blaming Labour's Jobs
Tax:
-
The Bank of England expect inflation to reach to 3.5
per cent by Q3 2025. ‘Previous increases in
energy prices are still likely to drive up CPI inflation from
April onwards, to 3.5 per cent for 2025 Q3' (Bank of England,
Monetary Policy Report, 8 May 2025, link).
-
The Bank of England said Labour's Jobs Tax is
increasing inflation. ‘Higher labour costs are
judged to be making an increasing contribution to core goods
and food inflation. The share of respondents to the ONS BICS
who report that labour costs are a reason for price rises has
been rising in recent months for both the manufacturing and
wholesale and retail sectors' (Bank of England, Monetary
Policy Report, 8 May 2025, link).
The Office for Budget Responsibility said Labour's
economic mismanagement has pushed CPI inflation up:
- The Office for Budget Responsibility said the decisions taken
at Autumn Statement exacerbated inflationary pressures. ‘Budget
policies temporarily boost output in the near term, but leave GDP
largely unchanged in five years. If the increased level of public
investment were sustained, it would permanently raise supply in
the long term and by significantly more than it does in the
forecast period. Budget policies push up CPI inflation by around
half a percentage point at their peak' (OBR, Economic and Fiscal
Outlook, 30 October 2024, link).
Unite responds to
latest inflation figures
Responding to the latest inflation figures, Unite general
secretary Sharon Graham said: “Today's inflation figures
show that the cost-of-living crisis is far from over. Prices have
risen a third faster than wages. Workers will only stop feeling
the pinch when wages catch up. The tried and tested method for
pushing up pay is collective bargaining by trade unions.”
