JRF responds to latest inflation figures

• JRF urges Government to focus on restoring confidence and resilience for families to work, spend and invest, improving protections like disability benefits, housing and essential public services rather than eroding them 
• Making cuts to benefits or public services now risks further weakening the economic outlook
• The Chancellor should think long term and avoid an over-reaction to either inflation data, slightly above target, or volatile bond markets, says JRF Chief Economist

Responding to the latest inflation figures, published this morning, and speculation that the Government could cut public spending, JRF director of insight and policy and chief economist Alfie Stirling said: 

“These figures serve as a reminder of the Government’s recent commitment to raising real living standards for all, and especially for low and middle-income households who bore the brunt of the cost of living crisis.

“The biggest threat to that commitment now is an overreaction from government to bond market toddler tantrums or slightly above target inflation data, which will only serve to further undermine the longer-term foundations of the economy.

“Rather than jeopardising the fragile economic recovery so far with further cuts to benefits and public services, government needs to be fast tracking plans to restore confidence and resilience for families to work, spend and invest, by improving protections rather than eroding them."