Reactions to today's Inflation statistics
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Consumer price inflation, UK: April 2024 Prime Minister Rishi Sunak
said: “Today marks a major moment for the economy, with inflation
back to normal. “This is proof that the plan is working and that
the difficult decisions we have taken are paying off. “Brighter
days are ahead, but only if we stick to the plan to improve
economic security and opportunity for everyone.” Rachel Reeves MP,
Labour's Shadow Chancellor of the Exchequer, responding to
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Consumer price inflation, UK: April 2024 Prime Minister Rishi Sunak said: “Today marks a major moment for the economy, with inflation back to normal. “This is proof that the plan is working and that the difficult decisions we have taken are paying off. “Brighter days are ahead, but only if we stick to the plan to improve economic security and opportunity for everyone.” Rachel Reeves MP, Labour's Shadow Chancellor of the Exchequer, responding to the latest inflation data, said: “Inflation has fallen, but now is not the time for Conservative ministers to be popping champagne corks and taking a victory lap. “After fourteen years of Conservative chaos families are worse off. Prices in the shops have soared, mortgage bills have risen and taxes are at a seventy year high. Rishi Sunak is now putting family finances at risk again with his £46 billion unfunded policy to abolish national insurance that will mean higher borrowing, higher taxes or the end of the state pension as we know it. “It's time for change. Labour's first steps will deliver economic stability so we can grow our economy and keep taxes, inflation and mortgages as low as possible.” Unite general secretary Sharon Graham said: “We are not out of the woods. Over the past three years prices have risen by 29 per cent, while wages have lagged far behind. The inflation crisis has meant a generational drop in living standards, and we're a long way from catching up. “Unite's latest report on profiteering shows conclusively how recent inflation was pushed up by companies profiteering at our expense. There is only one clear remedy to tackle inflation – and that is workers organising to get their fair share.” Reacting to today's inflation news Carsten Jung, senior economist at IPPR said: "Inflation temporarily falling close to the Bank of England's target is good news, but wages are still catching up with post pandemic price increases. This is why it's important that the Bank does not hamper the UK's nascent recovery by leaving interest rates too high for too long. “The Bank has tightened the screws too much and this will hold back the economy and wage growth going forward. They recently admitted that inflation is falling faster than it originally thought, suggesting an earlier reversal in policy. “Looking back, it is clear that the government could have done more to shield people from inflation. Other countries like France and Japan were more proactive in easing price increases and did more to stop firms from amplifying inflation via shielding their profits. Especially on profits there are still actions it can take.” Commenting on today's (Wednesday) inflation figures, which show headline CPI inflation at 2.3%, TUC General Secretary Paul Nowak said: “The cost of living crisis is not over – no matter how much ministers pretend it is. “Prices are still going up. Food and energy bills are much higher than a couple of years ago. And many are being hit by soaring mortgage repayments. “While it's good the inflation rate is lower, millions up and down the country are still having to cut back on everyday essentials as they struggle to makes end. “That's because household budgets have been decimated by the highest price rises in the G7 and wages have flatlined over the last 14 years. “Pay packets are still worth less today than in 2008, with working people on course to end this parliament poorer than at the start. “Make no mistake - the Tories have delivered the worst period for living standards in generations.” TUC polling published this week shows that nearly 6 in 10 (58%) say living standards have not got better this year – with just 14% saying they have improved. The poll also reveals that:
Worst inflation in the G7 Separate analysis from the TUC shows that UK has suffered the highest inflation and lowest economic growth of any G7 country between the end of 2021 (when interest rates began to be raised) and the end of 2023 (the last quarter with comparable information for all countries). The analysis shows that over this period UK prices shot up by 14.2% while the economy grew by just 0.4%. Over same period inflation across the G7 increased by 10.7% on average, while economic growth increased by 2.7% on average. Responding to the latest CPI inflation figures which show headline inflation falling to 2.3% and food inflation falling 1.1 percentage points to 2.9%, Kris Hamer, Director of Insight of the British Retail Consortium, said: “Inflation continued to head back towards the Bank of England's 2% target, with a significant drop in April. The lowest energy price cap in two years and food inflation falling to its lowest level since November 2021, helped to reduce pressure on household finances and brighten their outlook for the economy. There were also notable falls in the inflation rate of clothing and footwear and alcoholic beverages. And there was good news for fruit lovers as the price of fresh, dried and preserved fruit products all fell on the month. “Retailers are playing a key part in bringing inflation down, but it is vital that government policy supports this too. Retail plays a key role in every part of the country, from the smallest village to the largest city, employing millions of people, and serving millions more. As the cost burden of new policies rises - from business rates to packaging taxes – this affects not just the businesses, but the customers too. With an election looming, it is vital that parties outline their support for customers and retailers through the upcoming manifestos.” -ENDS- Notes:
Responding to this morning's ONS figures showing inflation has fallen by less than expected to 2.3%, JRF's Senior Economist, Rachelle Earwaker, said: “While today's figures show that the rate of inflation is coming down, this doesn't undo the devastating effects inflicted upon those on the lowest incomes in recent years. The harm experienced after years of high and rising prices will no doubt be tempered by this figure falling to 2.3%, but this open wound continues to go mostly untreated. "The Prime Minister says the plan is working and the Chancellor says the economy is returning to full health. However, inflation is not a measure of poverty and attempts to celebrate this figure finally nearing the 2% target ignores the gravity of the broader context of poverty in the UK." "Record numbers of food bank parcels are being distributed by the Trussell Trust. Double the number of people were living in destitution in 2022 compared to 2017, and we now have almost 150,000 children living in temporary accommodation. These are the indicators of hardship that the government should be addressing, not eye-catching inflation measures that hide the acute impact on society's poorest.” |