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   Prices up as inflation continues
by Tom Rodgers
Food bills will continue to increase as the cost of living in the UK is well above the Bank of England's target, official figures show. Food prices for consumers jumped 0.7% between June and July, the biggest monthly rise for two years. Higher costs for meat, fruit and vegetables during July contrasted with price falls a year earlier. The Consumer Prices Index (CPI) dropped slightly from 3.2% to 3.1% over the month. This is the third month in a row that prices have risen more slowly, but this figure is still way above the 2% inflation expected by the Bank of England. January's VAT hike to 17.5% as well as recent pressure from rising food costs has kept the CPI above 3% throughout 2010. Annual wage growth has also slowed to 1.3%, meaning households have less money to spend on more expensive products. Mervyn King, governor of the Bank of England, also warned: "How fast and how far inflation will fall are both difficult to judge, with substantial risks in both directions." But with huge public sector cuts on the horizon the situation could become difficult in Salford. Unions are warning that rising prices plus the expected cuts are "a double whammy for working people". Unite's general secretary, Derek Simpson said: "The double threat of inflation and brutal cuts to public services, sure to send unemployment soaring, is a poisonous mix for Britain's economy. Workers will struggle to keep up with the cost of basic necessities while the ConDems attack Britain's public services." Due to problems with spam only SalfordOnline members can now leave comments. Becoming a member of SalfordOnline only takes a minute, just hit the red Join Us button at the top right hand side of the page to create your Personal account. Got a news story? Need help with publicity for an event in Salford? Send it to newsdesk@salfordonline.com or call the SalfordOnline newsdesk on 0161 789 5377. |
