Inflation figures released today show that CPI has risen to 3.3% due to rising food and energy prices. RPI inflation hit 4.3% as prices continue to rise. CPI inflation is now at its highest level since 1992.
John McDonnell MP, LEAP Chair, said:
"This isn't about pay, and its not solely about the credit crunch, it's about short-term decision making over the last 11 years as New Labour has done nothing to move the UK from a fossil fuel based economy to an economy based on renewable technologies".
Professor Prem Sikka said:
"The government now only have blunt tools for managing the economy. The government should use the regulation of gas, electricity and water to impose a price freeze, and also claw back monies through windfall tax on utilities and oil companies to support pensioners and increase tax free personal allowances, so that people at the bottom of the pile have more cash"
Andrew Fisher, LEAP Co-ordinator, said:
"Inflation is rising due to the Government's failure to plan for 'peak oil'. Punishing public sector workers for international oil and food prices is economically misguided and will cause further resentment among dedicated public sector workers. It is politically and economically inept."