Breaking: inflation rates have reached 11.1% urging the government to consider most vulnerable

UK inflation rates have hit a 41-year high in the year to October as energy prices and food bills drive up the cost-of-living.

This morning the Office of National Statistics (ONS) announced the rates of inflation have reached the highest levels since October 1981, casting concerns on how low-income households are going to cope.

The ONS has estimated that prices are rising by more than 16% for the poorest households because food and energy bills are taking up just under half of their spending.

As the announcement has come the day before Chancellor Jeremy Hunt is due to deliver his autumn statement, various authorities and charities are now pleading he prioritises the financial states of low-income households.

The Trade Unions Congress warns the cost-of-living crisis is ‘getting worse by the day’ and will only be addressed by pay rises across the economy.

Frances O’Grady, Head of the Federation of Trade Unions said, ’family budgets are being shredded as the cost of food and energy skyrockets’ and if public sector pay is not addressed ‘millions of key workers will face years more of hardship’.  

The Joseph Rowntree Foundation, an independent social change organisation, has also commented on the increase saying, ‘The Prime Minister claims fairness and compassion will be at the heart of his government’s decision tomorrow but, as these alarming figures show, struggling families will need more than well wishes this winter.’

Rachelle Earwaker, Senior Economist for the JRF said, ‘When the Government sets out its plans tomorrow, benefits must at least be uprated in line with inflation as usual, as was promised when Rishi Sunak was Chancellor.

‘As well as upholding that pledge, the uprating should be brought forward rather than expecting people to struggle on until April before their income reaches anything approaching the soaring cost of food.’

Mr Hunt has blamed the ‘aftershock of COVID-19 and Putin’s invasion of Ukraine’ for driving up inflation across the world and has warned he will make ‘tough but necessary decisions’ on tax and spending to bring down the country’s debt whilst trying to protect the most vulnerable.

Prime Minister Rishi Sunak is currently speaking about the increase of inflation at the G20 summit in Bali. He blames Russia’s invasion of Ukraine for soaring costs, saying two-thirds of G20 countries have seen a price increase of 7%.

The British leader has also said he hopes the financial measures that will be delivered to England tomorrow should ‘instil economic stability and confidence’.

Photo by Enrico Mantegazza