Commenting on the latest inflation figures, which show that RPI inflation fell to 3.1 per cent in July, while CPI inflation fell to 2.8 per cent, TUC General Secretary Frances O’Grady said:
‘Britain’s longest wage squeeze in over a century shows no sign of ending soon. With pay rises continuing to trail behind the cost of living it certainly doesn’t feel like a recovery to most ordinary workers.
‘Despite the small fall in inflation, most rail season tickets will still go up by a wage-busting 4.1 per cent next year. This is good news for rail operators, who’ll use increased fares to line the pockets of shareholders, but bad news for hard-pressed commuters who are having to hand over even more of their pay packets for poor quality services.
‘Today’s figures also lay bare the government’s inflation scam where benefits are set by the lower inflation rate, while rail fares and student loans are set using the higher rate.
‘The Chancellor’s use of CPI inflation to uprate social security payments and public sector pensions is nothing more than a con trick that will further reduce the incomes of those who are already badly off, including those who have lost their jobs, low-paid workers and retired people who rely on their public sector pension to get by.’