THE cost-of-living nightmare is “far from over,” the TUC said today after official figures showed RPI inflation easing to 4.9 to 4.5 per cent last month.
General secretary Paul Nowak also warned against more Tory “gimmicks” after Chancellor Jeremy Hunt hinted that the “decisive” drop in inflation could give him room for a further cut in National Insurance contributions.
Mr Nowak said: “This will provide scant relief for hard-pressed families. Prices are still going up — just a little more slowly.
“Britain’s cost-of-living nightmare is far from over. Real wages are still worth less than in 2008 and household debt is soaring.
“The Conservatives have presided over the worst period of economic stagnation for generations and working people have paid the price.
“We need a proper plan for boosting living standards, not just gimmicks. That means urgent action to reduce insecurity at work and an industrial strategy worth its name.
“And with millions still suffering mortgage misery and businesses and households struggling with payments on loans, the Bank of England must now start to bring down interest rates.”
Unite general secretary Sharon Graham added: “Headline inflation may be slowing, but workers won’t be fooled.
“The cost of living has rocketed in recent years and it continues to rise. This has been driven by widespread profiteering.
“Meanwhile, it is workers and their families who continue to foot the bill through inflated prices and higher interest rates.”
Economists raised hopes that a Bank of England cut in interest rates could be on the cards within months, though policymakers are expected to keep the rate at 5.25 per cent tomorrow.
The data on RPI (retail price index) inflation follows official figures last month confirming that Britain fell into recession at the end of last year.
Institute of Public Policy Research associate director for economic policy Dr George Dibb said that, behind the fall, the details of where prices “are still rising the fastest also show we are entering a new phase of the inflationary period, with food prices and restaurants making the largest downward contribution.”
He urged the government to “shift away from the tax-cuts-at-all-costs strategy towards the much-needed prioritisation of investment into public services.”
Shadow chancellor Rachel Reeves said: “After 14 years of chaos and uncertainty under the Conservatives, working people are worse off.”
