JRF responds to latest inflation figures

19th Dec 2018

Responding to the latest inflation figures, Ashwin Kumar, Chief Economist at the independent Joseph Rowntree Foundation said:

“With today’s figures showing inflation holding steady at 2.2% whilst wages are growing at 3.3%, we are finally seeing some recovery after the 2016 referendum. But people on the lowest incomes are being locked out due to the continuing freeze on benefits and tax credits.

“The Cabinet yesterday signalled that they are ramping up preparations for a no-deal Brexit. Regardless of whether there is a deal, inflation is likely to go up once we leave the European Union. So part of the preparations must be ensuring that this does not sweep more people into poverty.

“Ending the freeze on benefits and tax credits a year early and ensuring that these continue to be uprated in line with prices would help to protect people against the uncertainties ahead”.