CONFUSING INFLATIONARY FIGURES ADD TO ECONOMIC UNCERTAINTY.

CONFUSING INFLATIONARY FIGURES ADD TO ECONOMIC UNCERTAINTY.

ASSURANCES SOUGHT OVER EFFECTS OF INFLATION FLATLINE

Following the publication of the Retail Price Index (RPI) showed that inflation has fallen to zero, while another measure of inflation, the Consumer Price Index (CPI) which excludes mortgages, showed an unexpected rise due to the increasing cost of imported food and new technology, the SNP have called for assurances.

SNP Treasury spokesperson, Stewart Hosie MP, said:

“These confusing inflationary indicators underline the extent of the economic uncertainty, and the need for the UK Government to get a grip.

“Falling prices may seem like good news for consumers but this inflationary flatline, and the prospect of deflation, is grim news for pensioners and savers.

“At the same time the rises in essential imported goods are very worrying and I would urge the Treasury and the Bank of England to pay careful attention to the value of sterling.”

SNP Work and Pensions spokesperson, John Mason MP, has also sought assurances over benefits increases, which are traditionally up-rated in line with the retail price index. Mr Mason said:

“Benefits have traditionally been up-rated in line with the price index, and we need clarity from Ministers over how this will impact on the level at which they are paid.

“I do not believe Ministers would cut benefits at a time like this, but they must use their discretion and common sense, and assure people that they will not face further hardship.

“We are only one step away from deflation, and it is essential that the Treasury take action to bring us back from the brink.”