The Chancellor is preparing to deliver his budget this afternoon against news that inflation has rocketed to 5.5%.
The Office for National Statistics released the latest figures for RPI yesterday which clearly shows effects of £200 billion of money printing -Quantative easing – has started to filter through to the wider economy.
Even the government preferred standard of inflation, the CPI – which replaced housing costs with spending on restaurants and hotels – has surged to 4.4%.
The news coincides with data issued by the Institute for Fiscal Studies that claims Britons have experienced the lowest drop in living standards for30 years with average household income falling by 6% over the last three .
One Eastleigh resident, 54, reacted angrily to the news:
“Inflation is simply another form of regressive government taxation which hits the poorest hardest – those on a fixed income pensioners and benefit claimants – while people in work are being clobbered by the double whammy of falling incomes and rising prices.
I expect the government will do nothing in today’s budget to combat inflation as they need it to inflate away their debt – neither will they uplift benefit payments like JSA in line with the cost of living.
It’s a crazy situation in Eastleigh where we have homeless people in deprived areas suffering real hardship, trying to live on shrinking benefits and slowly becoming pauperised while in the suburbs over-mortgaged middle classes are protesting about cuts to free childcare and child benefit.
Unemployed people on £64.60 per week are struggling to feed and clothe themselves.”