Childcare costs to energy bills support: What was announced in Jeremy Hunt’s Budget?
Inflation rose unexpectedly in February, hitting 10.4 per cent with food and drink prices again driving the rise, the Office for National Statistics said.
The latest Consumer Price Index rate was up from 10.1 per cent in January, reversing the downward trend of recent months. Most economists were expecting CPI to fall to 9.9 per cent in February.
Economists said ahead of the announcement the outlook for the government’s finances remains “still pretty grim” despite improved forecasts from the UK fiscal watchdog.
A panel of experts told Parliament’s Treasury Committee that households are facing a “two-year living standard squeeze” as a result of higher energy bills and tax rises.
The Office for Budget Responsibility (OBR) has further anticipated a 5.7 per cent decrease in real households’ disposable income per person between 2022/23 and 2023/24.
According to Ipsos’s latest poll, the cost of living remains the public’s overwhelming priority. Though March’s figures have come down since its peak in August 2022, 39 per cent of respondents confirmed that it remained their largest concern.
