Latest figures from the Office for National Statistics show that inflation rose to 3% in January. Economists were expecting an increase from 2.5% to 2.8%…
That is more than expected and is the highest rate since March last year. Last month saw an unexpected dip to 2.5% from 2.6% in November – the first fall in three months. Air fares not falling by as much as they usually do is partly blamed by the ONS, as are private school VAT-added fees and the cost of food and drink. Ouch…
Reeves says in response: “Since the election we’ve seen year on year wages after inflation growing at their fastest rate – worth an extra £1,000 a year on average – but I know that millions of families are still struggling to make ends meet.” Shadow Chancellor Mel Stride says “today’s inflation figures mean further pain for family finances – and it’s thanks to the Labour Chancellor’s record tax hikes and inflation busting pay rises.“ Not a great start to the year…
Speaking at his speech on how to achieve “progressive capitalism” Wes Streeting fired a dig and Andy Burnham:
“Bond markets are not bond villains and fiscal rules matter.”