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THE government was accused of having handed out more “misery for the many” as inflation statistics were published yesterday.
The Office of National Statistics (ONS) announced that the Consumer Prices Index (CPI) rose from 1.6 to 1.8 per cent in April after falling consistently for 10 months.
Annual wage increases, however, remained at 1.7 per cent.
“Today’s inflation figures show the cost-of-living crisis is far from over for workers and social security claimants,” said Left Economics Advisory Panel (Leap) coordinator Andrew Fisher.
The spike in figures is thought to be a hiccup resulting from higher costs of travelling at Easter.
But it goes against Chancellor George Osborne’s sunny view of the state of the British economy.
TUC general secretary Frances O’Grady pointed the finger at lack of governmental investment in pay and employment.
“Prices are rising faster than wage packets,” Ms O’Grady said.
“A real recovery where decent jobs provide fair wages, security and future prospects remains a distant goal.”
Alongside economists like Mr Fisher, the TUC leader blamed Mr Osborne and Prime Minister David Cameron for making people believe a growth in real-term wages is within reach.
“It will be years before workers even recover the earnings they have lost since 2008, let alone start to feel any better off,” she added.
The Bank of England was nonetheless happy that inflation rates were kept below the expected rate of 2 per cent, though the numbers have clearly been boosted by a 10 point rise in the value of sterling.
“The UK economy has increasingly become low wage, low skill, and with little job security for many — and the weakest labour laws in Europe,” argued Mr Fisher, “the UK’s substandard minimum wage institutionalises poverty.”
The ONS stats come a few days after Employment Minister Esther McVey suggested the 300 per cent increase in foodbank use was not connected to the government welfare cuts.
“Far from delivering a recovery, this government is delivering rising poverty, homelessness, stress and misery for the many,” concluded Mr Fisher.
