The UK’s Tory government really takes your breath away – no sooner do they start talking about relaxing restrictions on pay rises than inflation shoots up to its highest level in years, rendering all their offers academic.
No matter what they promise, you will still be left with less cash in your pocket.
(Notice that they’re not getting any poorer, though!)
Here’s The Independent to explain:
Inflation rose to a five-year high of 3 per cent in September, far outstripping wage increases, the latest official figures show.
The Consumer Price Index (CPI) rose 0.1 per cent from August to September to their highest since April 2012, increasing the likelihood that the Bank of England will raise its benchmark interest rate from 0.25 per cent next month.
Consumers face rising costs for essentials, with food and transport prices driving rising inflation, the Office for National Statistics said on Tuesday.
Wages rose at an annual rate of 2.1 per cent in the three months to July, meaning workers are seeing the value of their pay packets decrease in real terms.
Businesses are also facing a squeeze as Retail Price Index inflation, which will be used to set business rates next year, was 3.9 per cent in September.
Inflation has risen sharply since the Brexit vote in June last year as the value of the pound has fallen against other major currencies, causing the prices of imports to rise.
Labour‘s comment is actually quite restrained:
Peter Dowd MP, Labour’s Chief Secretary to the Treasury, responding to today’s inflation figures by the ONS, said:
“Inflation has reached its highest level in five years, while real earnings are still lower than in 2010, following seven years of Tory economic failure.
“Only Labour will deliver a £10 per hour Real Living Wage, investment in infrastructure, and an effective industrial strategy to raise living standards and build an economy for the many, not the few.”
Still, you can rely on Twitter to produce some juice:
The gap between inflation and wage rises grows, again. Did people really vote Brexit and Tory to bed worse off? It seems so
— Richard Murphy (@RichardJMurphy) October 17, 2017
— Richard Corbett (@RCorbettMEP) October 17, 2017
— SirBucky McNally OBE (@mcnally_bucky) October 17, 2017
UK inflation climbs to highest level since April 2012 on the same day as the TUC&trade unions lobby parliament for fair pay in public sector
— Angela Rayner MP (@AngelaRayner) October 17, 2017
With wages flat and inflation at 3% working people can't stretch their salaries much further before everything snaps #carney
— Harry Leslie Smith (@Harryslaststand) October 17, 2017
UK inflation 3.9% = lower living standards when wages rising far slower. RPI includes some housing costs CPI excludes https://t.co/0MuxpYbejS
— Kevin Maguire (@Kevin_Maguire) October 17, 2017
Tory GROWTH 2nd worst (?? worse)
Tory INFLATION ?worst? (4%‼️by RPI?)
These are SHOCKING❗️stats
— Sid (@SidLabour) October 17, 2017
Yes, inflation is up, debt is up, growth is down, and living standards are down. You can tell we’ve had a Conservative government for the last few years.
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