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THE rise in inflation should not deter the government from continuing to support the economy, including furlough payments for laid-off workers, the TUC warned today.
Inflation rose above the Bank of England’s maximum target in May when oil producers cashed in on increased demand as lockdown eased, latest Office for National Statistics figures show.
Clothing prices also increased.
The fuel price increase was the main factor in an increase in inflation to 2.1 per cent in May.
In April, inflation stood at 1.5 per cent.
TUC general secretary Frances O’Grady said: “Inflation is only just above target and the current emphasis must be on supporting the economy.
“The government must continue with interventions to give working people the security they need, and to protect hard-hit industries and the millions of workers still furloughed.
“To keep jobs safe, businesses should not be hit with higher furlough contributions in July, and the furlough scheme must be extended.”
The ONS said that motor fuels saw a 17.9 per cent price surge over the past year, representing the highest increase for more than four years.