Inflation in the U.K. has risen to 10.1% in September an increase from 9.9% in August.
The figure equals the 40 year high seen in July
The figures released this morning by the Office for National Statistics puts inflation into double digits driven by rising food prices offset by falling petrol costs
There were also increases from hotel overnight stays, and from furniture and household goods
Responding to the figures the Chancellor Jeremy Hunt said the Government “will prioritise help for the most vulnerable while delivering wider economic stability”
Shadow Chancellor Rachel Reeves tweeted
“This will bring more anxiety to families worried about the Tories lack of grip on an economic crisis they made.
We need to restore financial credibility and we need a serious plan for growth putting working people first.”
Rebecca McDonald, Chief Economist for the Joseph Rowntree Foundation said:
“The Chancellor has pledged to protect the most vulnerable and promised to act with compassion. With inflation running at over ten per cent, he could and should confirm today that the government will uprate benefits in line with this figure to ensure that the incomes of the poorest do not fall because of a Government decision. The Government should bring the increases forward to provide reassurance as soon as possible over the winter.
“The cost of living has millions fearing for the future, with the price of food rising faster than at any point since 1980. Any certainty they once had is now in jeopardy. This Government surely cannot wish to be remembered for withholding either cash or stability from families when the basic rate of benefits is already at its lowest in real terms for 40 years – and prices are bringing fear and alarm to millions. The majority of the public believe that benefits need to be uprated in line with inflation.
“It is morally indefensible that the government should still be considering leaving people with even less ability to pay for what they need, when their own party pledged to make sure the value of benefits keeps up with prices only months ago. The Chancellor has it in his power to assuage the fears of millions, by confirming today that benefits will be uprated in full and ahead of April.”
