Labour warned despite the fall in inflation, millions of families and pensioners will still be worse off.
– Cathy Jamieson MP, Shadow Treasury Minister
This fall in the inflation rate is welcome, but families and pensioners will face a real squeeze from big hikes in energy and food prices in the coming months. Instead of easing the squeeze, the Government is making things even harder for families on low and middle incomes. Millions of families and pensioners will be worse off because of the 3p rise in fuel duty and cuts to child benefit in January, and the granny tax which comes in on the same day that millionaires get a tax cut in April.