Inflation: Price to be paid says expert
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As food prices continue to rise, new figures due to be released on Wednesday morning are thought to show that inflation hit double figures in September. On Wednesday, the Office for National Statistics will disclose the most recent increase in the cost of living for households in the UK.
In August, the UK suffered from inflation at 9.9 percent, but it is predicted by experts that the announcement will show that Consumer Price Index inflation rose to 10 percent in September.
Though petrol prices have fallen over the past month by approximately four percent, according to Forex.com, there will be an increase to cover food inflation.
Food inflation is expected to have jumped from 13.1 percent in August to 14.3 percent.
Jeremy Hunt is under severe pressure to address the economic fallout from the mini budget made by Liz Truss and Kwasi Kwarteng.
The Office for Budget Responsibility will release its medium-term fiscal plan on October 31, leaving the Chancellor 12 days to plug the funding gap and increase economic assurance.
Economists predicted that the hole in public finances could be as large as £60billion following the turmoil of Kwarteng’s £45billion unfunded tax cut package.
It is thought that the inflation figure will impact benefits and pensions, just to name a few impacted areas.
The Work and Pensions Secretary will use the new figure as part of the annual benefits upgrading review.
The percentage of the increase will also be used to determine benefits if the Government decides to raise benefits in line with inflation which will come in effect next April.
The review on the triple-lock pension commitment will also be influenced by the percentage.
Pensions are set to rise either by average earnings, September’s CPI inflation percentage, or by 2.5 percent and the chosen one will be whichever is highest.
However, increasingly more and more policies are being scrapped and on Tuesday, No 10 suggested that ministers may scrap their commitment to the triple lock so the Chancellor plugs funding holes.
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The Times has also reported that the cap on the cost of social care which was promised by the Prime Minister may be ditched.
In October 2023 there is set to be an £86,000 cap on personal care payments for all adults and one an individual has paid enough for the limit, care costs will then be covered by state support.
However, it is thought that Mr Hunt may no longer see this as a viable and affordable option for the Government.
On Monday, the Chancellor was branded by some as “caretaker Prime Minister” when he said he would be reversing “almost all” of Kwarteng’s tax cuts and would be reducing energy bill support.
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