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.”

Using RPI to set student loans will cost graduates up to £5,000 more, says TUC

The government’s refusal to change the interest rate on student loans from the retail prices index (RPI) to the consumer prices index (CPI) – despite already doing so for key benefits, tax thresholds and public sector pensions – will leave graduates thousands of pounds deeper in debt, the TUC warns today (Tuesday).
To see the full press release go to: http://www.tuc.org.uk/