Fall in inflation welcome but high food prices are precious little comfort to low-income families
Responding to the latest CPI inflation figures for June, JRF Chief Economist Alfie Stirling said:
"A larger than expected fall in headline price rises in June is certainly welcome but it’s also important not to overinterpret monthly swings in inflation in either direction.
"We must recognise we are still in the belly of this crisis. For the 5.7 million low-income families in this country already forced to eat less or skip meals, inflation at close to 8% and food inflation above 17% will come as precious little comfort overall.
“The crisis is now entering a dangerous new phase. With 2.3 million low-income families continuing to take out loans to pay for essential bills, rising interest rates risk a second wave of material hardship even as inflation continues to fall.
"The Government has its head in the sand over the inadequacy of Universal Credit – the most important lifeline the worst-hit have in this crisis.
“They should rebuild the UK’s income safety net so that it reflects the actual cost of essentials, and invest in ways to reduce the UK’s future exposure to price increases across the economic system."