Charity says inflation projections will cause ‘shock and fear’

The Joseph Rowntree Foundation, which works to solve poverty, has said the recent inflation projections will cause ‘shock and fear’ for the UK public.

The Bank of England raised interest rates from 0.75% to 1% yesterday, the highest level since 2009, to try to control rapidly rising prices.

In coming months inflation is projected to hit 10%, a 30-year high, as the war in Ukraine has increased energy prices globally.

The Bank of England is working to keep inflation at a target of 2%, but there is difficulty ahead as it hit 7% back in March.

Economic experts have warned a recession may be incoming as the cost of living crisis continues and incomes are set to decline.

The Joseph Rowntree Foundation has highlighted how the most deprived households are expected to suffer most from the economic downfall.

‘The prospect of inflation at 10% later this year will cause shock and fear throughout the country for people who are already finding themselves unable to heat up food, limiting showers to save on energy costs, and riding buses to keep warm, said Dave Innes, Head of Economics at JRF. ‘Today’s projections show that we are nowhere near the end of this crisis, with a high chance of recession and rising unemployment adding to the economic shocks to come. Many will now be facing a winter of grinding daily hardship and worry about being able to access the essentials we all need to live.

‘The government must ensure that as a minimum, benefits are increased to match the real rise in living costs. The social security system was woefully inadequate even before the cost of essentials began to shoot up and needs urgent strengthening if we are to protect people from the harm that could be inflicted in the months to come.’

In related news, nearly a quarter of UK adults (23%) found it difficult to pay their household bills in the last month compared to last year, according to the Office for National Statistics (ONS). 

Photo by Christopher Bill