Stubborn inflation means real wages keep on falling

Commenting on the latest inflation figures published today (Tuesday) which show that consumer price index (CPI) annual inflation rose to 3.5 per cent and retail price index (RPI) annual inflation fell to 3.6 per cent in March, TUC General Secretary Brendan Barber said:

"Inflation is not falling as fast as many hoped. With pay growth also weak, families are getting poorer every month.

"Wages have been falling since mid 2010 and the government's own forecasters are predicting a three year earnings drop.

"You cannot build a sustainable economic recovery off the back of people getting poorer so ministers must do everything they possibly can to get more money into people's pockets.

"Giving families a few hundred extra pounds in their personal allowance, while taking away thousands more in tax credit cuts is not the way to ease the strain on people's finances."

Workers still getting poorer despite welcome inflation fall

Rob Johnston, Midlands TUC Regional Secretary

Commenting on the latest inflation figures published today (Tuesday) by the Office for National Statistics (ONS), which show that RPI inflation fell to 3.9 per cent and CPI to 3.6 per cent in January, Midlands TUC Regional Secretary Rob Johnston said: "This latest drop in headline inflation is good news for consumers, but inflation falls are being matched by low pay rises. With prices still increasing twice as fast as wages, midlands workers are still getting poorer month-by-month while high unemployment and wage stagnation persists.
"Inflation looks like being somewhat less of a problem in 2012, but our persistent lack of economic growth, mass unemployment and the ongoing damage caused by the government's austerity programme remain huge dangers."

For info: The latest inflation figures are available at:  http://www.ons.gov.uk/ons/dcp171778_255287.pdf

High inflation is creating a toxic mix for families' living standards, says TUC

Brendan Barber

Commenting on the latest inflation figures published today (Tuesday) by the Office for National Statistics (ONS), which show that RPI inflation fell to 5 per cent and CPI fell to 4.2 per cent in June, TUC General Secretary Brendan Barber said:"The small drop in overall inflation will be of little comfort to families facing soaring food and transport bills.
"The cost of living is still rising twice as fast as wages, so our income squeeze is getting tighter every month and will continue for some time.
"With a weak labour market, growth at a standstill, and both business and consumer confidence down, inflation is the only measure that's bounced back since the recession, creating a toxic mix for families' living standards."
For informationThe latest inflation figures are available at www.statistics.gov.uk/pdfdir/cpi0711.pdf
RPI inflation - the measure most commonly used in wage settlements - fell from 5.2 to 5 per cent in June while CPI inflation fell from 4.5 per cent to 4.2 per cent.
The latest available earnings figures show that total pay (including bonuses) increased by 1.8 between February and April 2011.

Commuters suffering from high inflation and poor growth, says TUC

Commuters in Birmingham

Commenting on the latest inflation figures published today (Tuesday) by the Office for National Statistics (ONS), which show that RPI inflation fell to 5.2 per cent and CPI rose to 4.5 per cent in April, Midlands TUC Regional Secretary Cheryl Pidgeon said: “Prices are rising at twice the rate of wage increases, putting real pressure on people’s take home pay.
“Commuters are feeling the pinch particularly hard, with transport costs up 10 per cent on last year.
“These figures are made worse by poor profitability and business confidence, which creates a tough climate for pay bargainers.
“But global inflationary pressures and the weak state of our economy mean an interest rate rise is the wrong answer to this problem, and would only make matters worse.
“The Chancellor must do more to encourage growth, otherwise the squeeze on living standards will get even tighter and further jeopardise our recovery.”

Chancellor has a direct hand in Britain’s big income squeeze, says TUC

Commenting on the latest inflation figures published today (Tuesday) by the Office for National Statistics (ONS), which show that RPI inflation fell to 5.3 per cent in March, TUC Regional Secretary Cheryl Pidgeon said: “The fall in inflation is welcome but the cost of living is still rising at more than twice the level of earnings so workers will struggle to celebrate today’s figures. “The Chancellor has a direct hand in this income squeeze as the VAT rise and budget measures are adding over a percentage point to inflation. “With tax credit cuts also hitting working families and spending cuts stunting growth, people are really suffering in our so-called recovery. “The government must heed the growing economic warning signs and change course before it causes even more damage.”

High inflation will make a tough year for workers even harder, says TUC

Cheryl Pidgeon, Midlands TUC Regional Secretary

Commenting on the latest inflation figures published today (Tuesday) by the Office for National Statistics, which show the Retail Prices Index (RPI) increased to 4.8 per cent in December and the Consumer Prices Index (CPI) rose to 3.7 per cent, Midlands TUC Regional Secretary Cheryl Pidgeon said: “The alarming rise in inflation means prices are running well ahead of pay deals. This will make a tough year for workers even harder to bear, particularly for public servants suffering a sharp real terms pay cut."
“Fuelling inflation with a VAT hike will hit workers in their wage packets and shopping receipts. This tax rise is bad for working families and damaging for the economy too.
“Surely it is now time for the Chancellor to use the budget to reconsider the VAT increase.”