Responses to UK inflation figures for October
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Rachel Reeves MP, Labour's Shadow Chancellor of the
Exchequer, responding to inflation rising to 11.1%, said:
“Inflation rising yet again will strike more fear in the heart of
families across Britain dealing with soaring food prices, rising
energy bills and a Tory mortgage premium on their home. “British
people feel the impact of rising inflation so much more than other
countries because 12 years of Tory economic failure has left us
exposed to any shocks....Request free
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Rachel Reeves MP, Labour's Shadow Chancellor of the Exchequer, responding to inflation rising to 11.1%, said: “Inflation rising yet again will strike more fear in the heart of families across Britain dealing with soaring food prices, rising energy bills and a Tory mortgage premium on their home. “British people feel the impact of rising inflation so much more than other countries because 12 years of Tory economic failure has left us exposed to any shocks. “The potent mix of high inflation and low growth is trapping us in a vicious cycle of stagnation. “In the Autumn Statement this week, Labour would be focused on making fairer choices for working people who are bearing the brunt of this crisis - and putting forward a real plan to grow our economy. “Labour's Green Prosperity Plan, our modern Industrial Strategy and our active partnership with business will get our economy firing on all cylinders.” British Retail Consortium Responding to the latest CPI inflation figures which shows headline inflation at 11.1%, and food inflation at 16.2%, Helen Dickinson, Chief Executive of the British Retail Consortium, said: “With the energy price cap rising in October, households found their gas and electricity bills going up again, pushing inflation to a new high. Food prices, particularly for dairy, rose again, driven up by high fertiliser, animal feed, and global food costs. Many customers are keenly anticipating Black Friday deals and other promotions in the run up to Christmas, as they prepare to buy gifts and festive treats. Unfortunately, there are few signs the cost of living crisis will abate any time soon. “Tomorrow, the Chancellor will unveil the Autumn Budget, where he has the opportunity to provide support for struggling households and relieve some of the costs on retailers and their suppliers, which in turn put pressure on prices. Retailers face an £800m per year hike in business rates from April 2023, so urgent government action is needed to mitigate this and prevent even higher inflation in the new year. The Budget is also a chance to fix the broken transitional relief scheme, that forces retailers to pay far more business rates than they owe.” -ENDS- Notes:
Joseph Rowntree Foundation Responding to news that CPI inflation for October was at 11.1%, Rachelle Earwaker, Senior Economist for the Joseph Rowntree Foundation said:
“The Prime Minister claims fairness and compassion will be at the
heart of his Government’s decisions tomorrow but, as these
alarming figures show, struggling families will need more than
well wishes this winter. "When the Government sets out its plans tomorrow, benefits must at least be uprated in line with inflation as usual, as was promised when Rishi Sunak was Chancellor. As well as upholding that pledge, the uprating should be brought forward rather than expecting people to struggle on until April before their income reaches anything approaching the soaring cost of food.” Resolution Foundation A jump in energy costs, despite the Energy Price Guarantee (EPG), and rising food prices, which rose by 16.4 per cent (the biggest annual increase since 1977), pushed CPI inflation to 11.1 per cent in October, and 12.5 per cent for low-income households, the Resolution Foundation said today (Wednesday) in response to the latest ONS prices data. As lower income households spend more of their budgets energy bills and food their effective inflation rate is higher than average: 12.5 per cent for the poorest tenth of households, compared to 9.6 per cent for the richest ten per cent. The Foundation calculates that this 2.9 percentage point cost-of-living gap is likely as its highest level since at least 2006 when records began. The Foundation adds that as winter comes around and the heating is turned on, different age groups will also experience differential inflation rates. With older people spending a far greater share of their income on heating than any other age group, people aged 80 are now facing an effective inflation rate of 15.3 per cent, with it likely to worsen further this winter. There were some positive signs in the latest data too. Output producer price inflation – which can be a leading indicator for future inflation pressure – continued to fall from 16.3 per cent to 14.8 per cent (down from a peak of 17.3 per cent in July). Lower wholesale gas prices should also put less pressure on energy bills next year. Jack Leslie, Senior Economist at the Resolution Foundation, said: “Everyone in Britain is affected by double digit inflation – which has caused pay packets to shrink at record rates. But some groups are more effected than others, and Britain now has a significant cost-of-living gap between rich and poor households. “Rising energy bills and rapid food prices mean that low-income households now face an effective average inflation rate of around 12.5 per cent, while in the cold winter months, the over 80s are already facing inflation rates of around 15.3 per cent. “This shows why the Chancellor needs to protect vulnerable households through the ongoing cost-of-living crisis when he sets out his Autumn Statement.” |