Gwynne highlights risk to wages as inflation creeps towards 3%

WhatsApp Image 2017-09-12 at 14.57.59Denton and Reddish MP, Andrew Gwynne, has raised his concerns for families across the constituency as official figures released by the Office for National Statistics (ONS) has shown an unexpected sharp rise in the rate of inflation for the period leading up to September.

For the month of August, UK inflation measured by the Consumer Prices Index rose to 2.9%, up from 2.6% in July[1]. The ONS suggested that the continued fall in the value of sterling since the EU referendum continued to be a major impetus for rising prices.

Clothing and footwear prices had the biggest impact on inflation, climbing 4.6% compared to 2016, their highest level since records began[2]. However, according to the ONS, the prices of most goods rose during August, largely connected to the rising import costs for retailers.

 

This at the same time that the government has offered certain public sector workers a below inflation pay rise, after seven-years of pay freezes.

Andrew Gwynne:

“As each month passes the government is proving how inept they are at handling the nation’s budget.

“At the general election, Theresa May told the whole country that no magic money tree existed – since then she’s found a £1 billion bung for the DUP to prop her up, and now has seemingly finally bowed to the pressure of hundreds of thousands of hard-working nurses, teachers and police offices to scrap the 1% pay cap.

“These decisions still mean that millions of public sector workers are taking home about 15% less than they were seven years ago, that is no longer acceptable.”

[1] https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/aug2017

[2] http://www.mirror.co.uk/money/inflation-surges-seeing-new-records-11154126

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s