Inflation eases, but poorer families 'still struggling'

16/09/2009

Many households are still struggling for money even though inflation has fallen to a five-year loan, a report has warned.

Inflation has dropped to its lowest level in nearly half a decade, the latest figures from the Office for National Statistics (ONS) show.

According to the official data, the Consumer Prices Index (CPI) dropped from a level of 1.8 per cent in July to 1.6 per cent in August, the lowest rate since November 2004.

This upturn in fortunes for British households was driven partly by recent falls in food prices, as well as an easing of gas and electricity bills brought about by falls in the wholesale energy markets.

Despite this, a new report from the Left Economics Advisory Panel has warned that the real rate of inflation is actually far higher for poorer households than for richer ones.

Research carried out by the think tank found that ongoing pay freezes and relatively high food and utilities bills mean that living standards have continued to decline for the UK's least well-off households.

Commenting on the report, RMT general secretary Bob Crow said: "While pundits talk about falls in inflation, out there in the real world it's a day to day struggle for people to make ends meet as the cost of essentials continues to rise."

Tags; Current UK Economy,

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