Government 'hasn't reacted' to rising inflation says economist
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Jeevun Sandher, economist at King’s College London, accused Mr Sunak of doing “nothing” to prevent the devastating 30-year inflation high announced on Wednesday. Detailing the horrific toll this will take on the British public, Sandher said the Government offered only “a couple of sticking plasters” to fix the oncoming cost of living crisis and, subsequently, have left the most vulnerable to fend for themselves.
Speaking to GB News, he said: “The government really hasn’t reacted to what is a once in a lifetime increase in prices.
“We’re going to see the largest fall in family incomes in 50 years. Today, a 30-year high for inflation and that’s going to increase next month. And that does not include the energy price rise of 50 percent.
“We needed to see the Government act and we saw nothing from Rishi Sunak, a couple of sticking plasters.
“The average family is now over £1000 worse off and, of course, the most vulnerable are about to see the worst falls in income.”
Inflation rates in the UK rose to seven percent in the year to March, it was announced on Wednesday, the highest rate since 1992.
Sharp rises in the cost of petrol and diesel had a significant impact on the rising inflation.
Petrol prices rose by 12.6p per litre in just one month, compared to a rise of just 3.5p per litre a year ago.
Diesel-users also suffered an extreme price jump as costs rose by 18.8p per litre, nearly six times greater than the rise a year ago.
Food and restaurant prices were also a major contributor to the inflation rise, with the war in Ukraine having a direct impact.
Russia is one of the world’s largest oil exporters and, as sanctions continue to be imposed on the nation, demand from other sources has driven up prices.
Ukraine, as well as Russia, are also the leading global suppliers of sunflower oil, and a reduction in their production has caused further price rises.
The costs of oils and fats for food in the UK increased by 7.2 percent in March, according to the Office for National Statistics.
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And Deutsche Bank senior economist Sanja Ray said that the cost of living crisis is only going to exacerbate the risk of recession facing the UK.
He said: “Inflation is now everywhere. Price rises are broad-based and gaining momentum … this, we think, will shift the conversation away from March’s more dovish policy message.
“The intensifying cost of living crisis will only add to the UK’s recession risks, something we think the MPC (monetary policy committee) will be carefully watching as we move into Q2-2022.”
Britain’s biggest retailer, Tesco, warned that profits this year will likely drop due to tough economic conditions and pressures on consumers, with Sainsbury’s, Marks and Spencer and the Ocado Group also registering falls in their shares.
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