Stubborn inflation means real wages keep on falling
- Published on Tuesday, 17 April 2012 11:28
- Posted by Scott Buckler
Commenting on the latest inflation figures published today (Tuesday) which show that consumer price index (CPI) annual inflation rose to 3.5 per cent and retail price index (RPI) annual inflation fell to 3.6 per cent in March, TUC General Secretary Brendan Barber said..
'Inflation is not falling as fast as many hoped. With pay growth also weak, families are getting poorer every month.
Wages have been falling since mid 2010 and the government's own forecasters are predicting a three year earnings drop.
You cannot build a sustainable economic recovery off the back of people getting poorer so ministers must do everything they possibly can to get more money into people's pockets.
'Giving families a few hundred extra pounds in their personal allowance, while taking away thousands more in tax credit cuts is not the way to ease the strain on people's finances.'