Drop in inflation fails to put the brakes on rocketing cost of living

16 January 2014

The Coalition is patting itself on the back as Inflation falls to 2%, but Labour is demanding a stronger minimum wage as unions warn that the cost of living is still growing.

In December, Inflation had fallen to 2% for the first time in over four years. However, unions are worried that the drop has not eased the cost of living crisis.

The unions have expressed their discontent at the pressure workers continue to endure, as their wages are still failing to keep up with inflation, even after six consecutive drops in the Consumer Price Index.
Unite General Secretary Len McCluskey said:

“It masks the grim reality for millions of people who are struggling to meet their everyday bills, as wages are lagging well behind inflation.”

Whilst, Unison General Secretary Dave Prentis said:

“It is only the financial elite in the City who are looking forward to bumper bonuses this year. The rise in the retail price index to 2.7 per cent shows the underlying cost of living crisis is getting worse.”

A fall in the inflation rate is automatically classified as a positive by most of us, but ordinary people are still struggling to make ends meet at the end of every month as a slowdown in the rise of outgoings is simply not enough to reverse the damage done by years of pay cuts, freezes and redundancies.

The government may have met its target for inflation, but this is not the time for it to turn its back on those who continue to struggle to make ends meet – a section of society that is sadly turning into a very large group of people.