THE cost-of-living crisis continues for workers, Unite warned today after official figures revealed inflation figures fell by less than expected last month.
The Office for National Statistics (ONS) said inflation dropped by 0.2 per cent last month, largely driven by the slowest food price rises in two years.
The annual RPI inflation rate stood at 4.3 per cent and CPI at 3.2 per cent in March.
Although inflation is at its lowest level since September 2021, experts had expected CPI to fall to 3.1 per cent, dashing hopes for interest rate cuts this year.
Unite general secretary Sharon Graham said: “Headline inflation may be falling, but sky-high prices are now baked into the economy and that means the cost-of-living crisis continues for workers.
“And we are not ‘all in it together.’ Big businesses keep announcing mega profits while every day people still struggle.”
The ONS also revealed that wage growth is also stronger than expected, after a 6 per cent rise in the three months to February.
Its chief economist Grant Fitzner said: “Inflation eased slightly in March to its lowest annual rate for two-and-a-half years.
“Once again, food prices were the main reason for the fall, with prices rising by less than we saw a year ago.
“Similarly to last month, we saw a partial offset from rising fuel prices.”
UK interest rates currently sit at a 15-year high of 5.25 per cent after hikes by the Bank of England in an effort to quash inflation.
Prime Minister Rishi Sunak said the figures show “that after a tough couple of years, our economic plan is working,” although the reduction in inflation is primarily linked to interest rate rises by the Bank of England and changes to global price pressures.
Shadow chancellor Rachel Reeves said: “Prices are still high in the shops, monthly mortgage bills are going up and inflation is still higher than the Bank of England’s target.
“At the same time Rishi Sunak risks crashing the economy again with his Liz Truss-backed £46 billion unfunded tax plan to abolish national insurance.”
Pranesh Narayanan, research fellow at the IPPR think tank, warned unemployment is ticking up with “record levels of people who are too sick to work, a cost-of-living crisis and stagnant growth.”
He urged the Bank of England to cut interest rates and the government to come up with a “serious plan” for public spending and investment.
