UK inflation remains in double digits with household essentials costs skyrocketing

Today the Office of National Statistics announced that inflation rates fell less than expected last month, with the cost of food and drink seen as the culprit.

Increasing at the quickest annual rate for 45 years, the cost of food and drink has caused inflation rates to only drop to 10.1%, resuming a downward trajectory after figures increased to 10.4% in February.

Grant Fitzner, the Chief Economist at the ONS, said: ‘The main drivers of the decline were motor fuel prices and heating oil costs, both of which fell after sharp rises at the same time last year. Clothing, furniture and household goods prices increased, but more slowly than a year ago.

‘However, these were partially offset by the cost of food, which is still climbing steeply, with bread and cereal price inflation at a record high.’

The news will inevitably add to pressure on the poorest households in Britain, who spend a larger share of their income on basic essentials than richer ones. The ONS said fruit, chocolate and confectionary, and meat prices all increased, while the price of ready meals and sauces, and hot beverages rose at the fastest annual rate since comparable records began in 1989.

Sharing their comments on the announcement, Rachelle Earwaker, Senior Economist at the Joseph Rowntree Foundation (JRF), said: ‘This is the seventh consecutive month with inflation over 10% – bringing no relief and growing anxiety to families facing hardship.

‘Food prices alone have risen by an astonishing 19.1% in the year to March – another new high and the highest rate in over 45 years. The cost of food risks perpetuating this crisis long into the future, as families are increasingly unable to provide what they know they need to be healthy – regular, nutritious, cooked meals.’

‘The cost of essential items is causing a daily struggle for millions, especially those who had the least before the crisis began,’ Rachelle said. ‘Nine in 10 families on Universal Credit have been unable to afford the essentials this winter and the consequences of this will be felt today, tomorrow and well into the future.’

However, in an attempt to help struggling families with the increased costs of food, more than 90 UK charities have joined forces to call on government party leaders to guarantee essentials for low-income households.

In a letter to all UK political party leaders, the JRF, the Trussell Trust and other charities and professional bodies have outlined that currently the standard allowance of Universal Credit is a mere £85 per week for a single adult, which is at least £35 a week below a conservative estimate of what’s needed to afford basic household essentials such as food and heating.

In addition, people receiving the benefit could be given even less to live off as they face deductions from their support which are automatically taken at unaffordable rates, for example to pay off debts to the government.

Alongside families struggling, experts who work for the charity Parkinson’s UK have said that people are left to financially suffer even though they cannot work due to having a severe long-term illness.

Sue Christoforou, Senior Policy and Campaigns Adviser, Financial Health, at Parkinson’s UK said: ‘There are thousands of people with Parkinson’s of working age, and a recent survey we conducted showed that around half can no longer work at the same rate or for the number of hours a week that they had been able to before their diagnosis.

‘No longer able to work, as much as previously and not yet old enough to claim a pension, many will find themselves reliant on Universal Credit, a benefit that does not pay enough to live on. 

‘Receiving a diagnosis of a degenerative condition like Parkinson’s when you’re young is hard enough to comprehend. Stress and worry that benefits won’t provide enough money to buy essentials creates unnecessary pressure and worsens symptoms making it harder to work and live well. That is why we agree that Universal Credit must be paid at a rate that will guarantee our essentials.’

Image: gemma and nrd