Shadow Chancellor of the Exchequer Rachel Reeves responds to ONS Figures

Responding to ONS figures released today showing CPI inflation came in at 4.2%, Shadow Chancellor of the Exchequer Rachel Reeves said:

“Inflation rising to more than double the target and the highest since 2011 are extremely concerning giving the growing cost of living crisis.

“It's going to leaves households more than £1,000 worse off.

“From the energy price cap going up, increased VAT for hospitality businesses, used car and clothing costing more, fuel prices hitting another record high and rents rising at their fastest rate in 13 years - the list of price crunches linked to this inflation rise goes on and on.

“Instead of taking action, the government are looking the other way, blaming 'global problems' while they trap us in a high tax, low growth cycle.

“Labour wouldn’t be hitting working people with a tax hike, and as heating bills rise, we'd cut VAT on domestic energy bills now for the winter months, to help ease the burden on households.”

ENDS

Notes to editors;

• Households spend an average of £508.50 a week (1-12 All expenditure groups)https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/expenditure/datasets/familyspendingworkbook1detailedexpenditureandtrends
• That means CPI inflation of 4.2% increases weekly spending by £21 a week, £93 a month or £1,111 a year
• The OBR have forecast that inflation will average 4% next year:https://obr.uk/efo/economic-and-fiscal-outlook-october-2021/
• CPI inflation of 4% would leave the average household spending £1,058 more a year