Fylde MP Mark Menzies has posted on his Facebook page the celebratory Tory banner stating that inflation is decreasing – having fallen from 10,1% in March to 8.7% in April, according to the Office for National Statistics. This banner claims to evidence that the fall in inflation proves that the Conservatives are delivering on their five promises.
However, this seems to ignore the forecast that, as a consequence of the continued high inflation rate, the Bank of England will raise interest rates above 5% as the fall is less than expected. Added to this, whilst the inflation rate has dropped to 8.7%, food price rises remain close to 45-year high
This is a worrying time for borrowers – who have been warned by Building Societies and Banks to brace themselves for this Bank of England interest rates rise to above 5% before the end of the year.
Charities and anti-poverty campaigners have also warned that this fall in the headline inflation rate will not automatically spell an improvement in living standards for hard-pressed households, as the cost of basic essentials remained stubbornly high. The ever increasing cost of a weekly shop is hitting the poorest families the hardest as food and non-alcoholic drink prices soared by 19% in the 12 months to April, the fastest annual rate since 1977 and the highest level in western Europe.
The controversial Mark Menzies post is shown in full below.