Denton and Reddish MP, Andrew Gwynne, has slammed Theresa May’s competence as the Office for National Statistics confirmed that a fall in the value of the pound as well as a rise in import costs has seen the inflation rate rise to 2.9%, the highest since June 2013, and above the Bank of England’s 2% target.
The Office for National Statistics confirmed that the recent rise in the price of clothing, food and electronic items contributed to the inflation rise. Coupled with the recent dramatic fall in the in the value of the pound which saw a rise in the cost of imports which has increased the costs of goods at a higher than expected rate.
The fall in the value of the pound began in the wake of the Brexit referendum, which has been one of the key factors behind the rise in inflation. Crucially however, increases in wages have consistently not kept up with inflation.
Recent data released by the Office for National Statistics showed that average weekly earnings, excluding bonuses, increased by only 2.1% in the three months to March.
Andrew Gwynne said:
“The Tories claim to be strong and stable, but these latest figures show they’re losing grip of the nation’s finances.
“As inflation continues to rise the economy will suffer as prices rise, this will impact particularly on the elderly and the young as prices continue to outstrip wages.”