Reactions to May inflation figures

Rachel Reeves, Labour's Shadow Chancellor, responding to the inflation figures published this morning by the ONS, said:

“After 14 years of economic chaos under the Conservatives, working people are worse off. Prices have risen in the shops, mortgage bills are higher and taxes are at a 70-year high.

“Labour has a plan to make people better off bringing stability back to our economy, unlocking investment and delivering reform. All the Conservatives are offering is a desperate wish list of unfunded spending promises that will mean £4,800 more on people's mortgages.

“The choice at the election is simple: stability with Labour that will make Britain better off or five more years of chaos with the Conservatives that will mean higher mortgages.”

Commenting on the latest inflation figures, Unite general secretary Sharon Graham said:

“Falling inflation doesn't mean falling prices. The worst cost of living crisis in generations is still dragging on.

“We need action from the Bank of England on Thursday to begin lowering interest rates and relieve the pressure on hard pressed homeowners. And we need a new government to get to tackling the corporate profiteering that has driven this crisis.”

Reacting to today's inflation news Carsten Jung, senior economist at IPPR, said: 

 "Inflation temporarily falling to target is good news, it should prompt the Bank of England to start easing financial pressure by bringing down interest rates this week. Falling inflation expectations by households and a cooling labour market suggest that the current inflation fight could be in its last round. 

“To further ease inflationary pressures and grow the economy, whoever wins the next election must urgently address the dire labour market situation, where a record number of people have left the labour force, often due to illness. Moreover, only huge investments in the clean energy transition can shield us from future inflation shocks from international oil and gas markets.” 

Commenting on today's (Wednesday) inflation figures, which show headline CPI inflation at 2%, TUC General Secretary Paul Nowak said:  

“Over the last three years UK families have suffered the highest prices rises in the G7 – with inflation going up more over that period than it usually does over an entire decade. 

“Ministers can try to rewrite history all they like. But the Conservatives have presided over the worst period for living standards in modern times. 

“Food and energy bills have surged. Rents and mortgages have skyrocketed. And real wages are still worth less than in 2008.  

“Working people have paid the price for this government's failure with household debt also increasing at record levels. 

“We can't go on like this. We need a government that will make work pay.” 

TUC analysis published this morning (Wednesday) shows that unsecured household debt will rise by a “record” £1,660 this year as families continue to struggle with cost of living.   

Responding to the latest CPI inflation figures, which show headline inflation falling to 2.0% and food inflation falling 1.2 percentage points to 1.7%, Kris Hamer, Director of Insight of the British Retail Consortium, said:

“The country will breathe a sigh of relief as inflation hits the Bank of England's target of 2% for the first time in almost three years, raising hopes of an interest rate cut for the 9.6 million mortgage holders across the UK. Falling energy prices continue to be the main driver behind the fall in the headline rate however, a lower inflation rate in clothing and furniture also contributed. Food inflation fell the fourteenth month in a row, and those with a sweet tooth will be happy to see that the price of chocolate and confectionary products fell on the month.

“Hitting the 2% target is welcome news, however, it is vital that inflationary progress is not taken for granted by the next government. Retailers are working hard to limit price increases for their customers, and the next administration must play their part in reducing cost pressures on retailers and the customers they serve. Addressing key costs such as the business rates burden, which leads to customers paying a higher price at the till, must be a priority for whoever forms the next government.”

-ENDS-

Notes:

• ONS Consumer Price Index figures