We are all feeling the effects of inflation, unemployment, benefit cuts, job security, literally everyone in the country is suffering in one way or another, and it is going to get a lot worse before it gets any better.
Ok so we are 700 a year worse off at the moment, but what about next year? As we all know wages are supposed to be kept in line with inflation, but they never are, the single parent is struggling, the senior citizens are struggling, the sick and disabled are struggling, and the average working family are struggling, and the question being asked by all of us is why? It seems we have a government who seem hell bent on making us all suffer, especially those who are sick elderly or disabled. The policies set out by this government remain barbaric to everyone, it really is hard to understand why in 2011 in the UK, there are so many families with children living below the poverty line. My question is how can the prime minister and his stooge say that the UK will be the most family friendly country in Europe, with all the misery and poverty he has caused our country,and when is he going to realize that he is wrong?
The average family is £728 worse off than a year ago as wages fail to keep pace with the rising cost of living, figures have shown.
Rising inflation putting the squeeze on family finances and most are around £60 a month worse off than they were a year ago.
According to the latest Asda Income Tracker family spending power fell by £14 per week in May 2011, a record low since records began in January 2007.
The average family had £165 per week to spend in May – 8 per cent down from this time last year due to higher food bills and higher transport costs. Staple foods have risen in price by 40 per cent in the past year, while diesel has gone up by 45.8 per cent and car insurance by 74.7 per cent, resulting in what will amount to the largest drop in the standard of living since the 1870s.
Alcoholic drinks and tobacco prices grew by 9.8 per cent over the year to May 2011, the highest inflation rate of all product categories and the fastest year-on-year increase since March 1992.
Andy Clarke, Asda president said: “The true cost of living is now beginning to take its toll. Inflation is rising twice the rate of earnings, petrol prices are at a record high and utilities bills are only getting steeper – all adding up to a £14 a week hole in people’s pockets.”
Economists do not think that the situation will improve in the short-term. Last week a new report by the Organisation for Economic Co-operation and Development (OECD) and the UN Food and Agriculture Organisation (FAO) said that higher food prices and volatility in commodity markets were here to stay, while in the UK, energy providers are expected to follow Scottish Power and increase fuel bills in the coming weeks.
Roger Bootle, the economist, said the Consumer Price Index – which was at 4.5 per cent in May – could rise as high as 5.5 per cent this year.
Mr Bootle, a former government adviser, said: “The increase in the cost of energy means inflation is likely to reach a higher peak than previously forecast. I don’t think we will see a return to growth in disposable incomes until the end of 2012.”