Tuesday, 12 August 2008

Families Bear The Brunt Of Labour Economic Failure

Today's announcement that the Governments preferred measure of inflation, the Consumer Prices Index, now sits at 4.4%, more than double its target rate, is a disaster for hard working families and those who can least afford big increases in their cost of living given the latest increase is driven by a record surge in supermarket food prices.

CPI inflation is now at its highest figure since 1997 and double its figure in January, while the Retail Price Index - including housing costs - rose to hit 5%, its highest level for at least 17 years.
The Office of National Statistics confirms food inflation alone has spiralled to a CPI record 13.7% year-on-year, a massive jump from its 10.6% level in June. It appears this was principally due to a rise in meat costs, particularly bacon, ham and poultry. Meat prices rose 16.3% year-on-year, up from the 11.2% recorded in June.
Essentials like breads and cereals saw an increase of 15.9% on the year. Vegetables, including my favourite potatoes, shot up to 11.1% up from 7.4%.

The Office of National Statistics believe someone spending £100 a week on food last year, will have to find another £712 this year to put the same items on the table. The Daily Mail's 'Cost of Living Index', which looks at a smaller basket of shopping basket essentials, now suggests they have increase by 25% over the past year, equating to a whopping £1,300 extra this year.
If people can't afford food we are condemning our population to complete poverty and that simply isn't acceptable for any country let alone one of the wealthiest on the planet. To tackle this we must offer fuel tax cuts to our hauliers and ensure our supermarkets are not profiteering from our people.

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