|Printable version||E-mail this to a friend|
NEF - Inflation bites Brexit Britain: Squeeze on households continues
Costs continue to outstrip wages for majority: real wages haven’t recovered to pre-crisis levels, and evidence shows households are cutting back on all but essential spending.
Britain’s Brexit economy is on shaky ground: non-food high street sales are at a six year low and any further currency shocks will lead to additional costs for debt-laden households.
Urgent action needed to protect worst-off: rising inflation must be matched with efforts to raise wages and reduce living costs, from housing to energy.
In response to today’s updated inflation figures, which remain at a three year high, Laurie Macfarlane, Senior Economist at the New Economics Foundation, said:
“Inflation remains at a three year high, putting Britain’s households under continued pressure. Millions are struggling under record levels of debt. People’s real incomes still haven’t recovered from the financial crisis because of low wage growth and high living costs and those on low incomes are suffering the most.”
“Today’s figures are a stark reminder of the reality – rising living costs, debts, a sharp decrease in consumer spending and growing risk of stagflation.”
“If sterling continues to fall during the course of Brexit negotiations, it will be households who pay the price. The government must meet today’s inflation rise with a commitment to increase wages and renewed efforts to reduce living costs, from municipal energy projects that will cut bills, to boosting community-led affordable housing.”
Notes to editors
- The New Economics Foundation is the UK’s only people-powered think tank. The Foundation works to build a new economy where people really take control. www.neweconomics.org
- All comments in response to the ONS UK consumer price inflation update, released 11 April 2017 https://www.ons.gov.uk/releases/ukconsumerpriceindicesmar2017
Latest News from
Adam Smith Inst - Medical monoliths can be smashed after Brexit22/06/2017 15:35:00
New report reveals opportunity for UK to be a leading medical innovator after Brexit
Kings Fund - New £250,000 leadership programme for charities launched22/06/2017 14:35:00
The King’s Fund, Comic Relief, and the Big Lottery Fund have opened the application process for a unique support programme enabling charity leaders to help each other through sharing expertise and developing skills.
IFG - Progress on digital government 'painfully slow'22/06/2017 12:35:00
A new report argues the digitisation of government and public services is happening too slowly in the UK.
JRF - Threadbare Queen’s Speech means injustices will be left untouched22/06/2017 11:35:00
Campbell Robb, chief executive of the independent Joseph Rowntree Foundation (JRF), responded to yesterday’s Queen Speech,