UEA expert: 'targeted' support needed to protect poorest from inflation
The Office for National Statistics found that average pay is failing to keep up with the cost of living
Last updated 19th Jan 2022
The Government should offer targeted support to the poorest this winter, as prices out-strip wages.
That's according to Mike Brock, an economics professor from UEA.
It comes as the Office for National Statistics has confirmed this morning the rate of Consumer Price Index inflation has increased to 5.4% - that's the highest rate in almost 30 years.
He told us: "There are policies that the Government could look at, like making sure the poorest in society, the ones who really would struggle if their pay isn't keeping up with those prices rises, are supported.
"The Government could perhaps give them a one off or a short-term loan or subsidy to make sure that they can meet that gap".
He says we should also try and cut our own costs where possible: "Perhaps for a short period of time, we just start to re-evaluate what we're spending our money on and think about whether we should reallocate our spending elsewhere, so we can cover and compensate for the losses that we're feeling in the short-term.
"But the things that's really driving those price rises is to do with energy. Now that's really tricky for us as consumers because we have to use energy, we need to heat our homes, it's nothing something that we can stop buying".
He concluded by saying that a blanket pay rise to counteract todays high-levels of inflation, would be a mistake: "If everyone was suddenly given a wage rise just to try and match those price rises that we're seeing in the economy, of course we feel like we're all that much richer, we all start to go out and buy new things even though we should just be using the money to buy the things we were and that can actually make prices rises even further again".