Fact Service March 2021

Issue 12

Inflation good news provides pay opportunities, says TUC

UK Consumer Price Inflation (CPI) slowed to 0.4% in the 12 months to February, down from 0.7% the month before, the ONS has announced.

Rising fuel and energy prices, which had been expected to push CPI up, were offset by downward pressures in other areas, including travel costs and toys, the ONS said

The Consumer Prices Index including owner occupiers’ housing costs (CPIH) stood at 0.7% in the 12 months to February 2021, down from 0.9% to January.

Commenting on the figures, TUC general secretary Frances O’Grady said: “With inflation down again, the priority is stimulus to get the recovery moving. The chancellor should do this with an action plan to boost pay, starting with the key workers who kept us going through the pandemic.

“High streets and business won’t recover if people have nothing to spend. But pay rises will put fuel in the tank. And this will drive our recovery much faster, supporting business growth and job creation.”