IPPR responds to inflation figures
Responding to the ONS August CPI figures Dr George Dibb, head of the Centre for Economic Justice at IPPR, said:
“Many people will welcome CPI inflation easing slightly this month, falling from 10.1% to 9.9%, including the Bank of England who are deciding whether to raise interest rates next week. However, this headline figure has been pulled down by falling petrol prices, and it hides worrying news that the prices of food and clothing are continuing to accelerate upwards.
“High inflation means high prices, and without intervention this will lead to more hardship, more poverty and more destitution. The government’s price cap on energy for households and businesses is a welcome step but it won’t instantly reduce the inflation in essentials such as food and clothing that we see today. This goes to show why the price cap policy alone is not enough. The most vulnerable households on the lowest incomes still require more support through the welfare system.”