Inflation has fallen but high interest rates still hurting people’s finances

Responding to the news that UK inflation has fallen to 2.5%, Danny Sriskandarajah, chief executive of the New Economics Foundation, said:

“Inflation rates may have fallen but that’s likely to make little difference to the millions of people in this country struggling to afford the essentials — many of whom are also being hammered by high interest rates.

“The inflationary shock that resulted from the war in Ukraine has passed — but the pace with which the Bank of England whacked up interest rates in response is still hurting people’s finances and making it more difficult for the government to invest in the things we need.

“The Bank of England urgently needs to cut interest rates. And, to reduce the impact of future inflationary shocks, the government should boost people’s incomes via the social security system, and tax the wealthiest to help pay for it.”

ENDS

Contact

James Rush – james.rush@neweconomics.org

Notes

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