Inflation soars to near 30 year high

Inflation rose at its fastest rate for nearly 30 years in the 12 months to December, reaching 5.4% CPI (consumer prices index), up from 5.1% the month before, and 7.5% RPI (retail prices index, the measure preferred by unions), up from an already alarming 7%.

The last time CPI inflation was higher was March 1992, at 7.1%. Meanwhile, the ONS confirmed, CPIH (consumer prices index including owner occupiers’ housing costs) rose from 4.6% to 4.8%. The largest upward contributions to this figure came from housing and household services (1.31 percentage points) and transport (1.29 percentage points, mainly from motor fuels and second-hand cars).

“Families need more help from government,” TUC general secretary Frances O’Grady commented. “The chancellor must come forward with a plan to tackle the cost-of-living crisis. Working people need stronger rights to bargain for fair pay increases. And families need more help with rising bills through universal credit.”

General union Unite responded to the figures by warning of a “cost of living catastrophe”, while public service union UNISON’s general secretary, Christina McAnea predicted that “Health and care services, already thousands of workers short, are likely to be the biggest losers … the figures make a mockery of the 1.75% pay offer for school and council staff”.

https://www.ons.gov.uk/releases/consumerpriceinflationukdecember2021

https://www.tuc.org.uk/news/inflation-chancellor-must-come-forward-plan-cost-living-crisis

https://www.unitetheunion.org/news-events/news/2022/january/as-cpi-climbs-to-54-unite-chief-demands-significant-wage-rises-to-combat-cost-of-living-catastrophe

https://www.unison.org.uk/news/press-release/2022/01/inflation-rise-terrible-news-for-families-and-public-services-says-unison