Fall in inflation offers little comfort following rise in bills, NEF warns
Measures to reduce bills and boost incomes would protect people in the long run
16 April 2025
The fall in inflation announced today will offer little comfort to those who have seen their bills increase at the beginning of April, the New Economics Foundation has said.
Theo Harris, economist at NEF, said:
“Lower than expected inflation in March is good news for the economy overall but will be little comfort to people who have seen lots of bills increases this month — including water, energy, and council tax.
“Next month, when the April data is released, we will likely see a bump in the inflation figure, driven by these bill increases. Crucially, the Bank of England should see this as a predictable spike that can be looked through, rather than raising interest rates in response.
“To protect people in the long run, the government should introduce a National Energy Guarantee, that would lower bills for most households, and boost people’s incomes via the social security system.”
ENDS
Notes
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James Rush – james.rush@neweconomics.org
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Topics Macroeconomics
