Inflation fall shows Bank should hold off interest rate rise, says TUC
Commenting on today’s (Wednesday) inflation figures from the Office for National Statistics, which show CPI inflation down to 2.5% TUC General Secretary Frances O’Grady said:
“Wages are still worth less than before the financial crisis, leaving many working people struggling to get by. A hike in interest rates is the last thing they need, and the fall in inflation shows the Bank of England should hold off.
“What people really need is higher wages, not higher interest rates. It’s time for a new deal for working people that makes wage growth a much higher priority.
“The government should start by funding a proper pay rise for every public sector worker this year. And they must raise the minimum wage to £10 an hour as quickly as possible, so that more families can get by without getting into debt.”
The TUC is holding a march and rally on London on Saturday 12 May demanding a new deal for working people.
- For more information on A New Deal For Working People, the TUC’s march and rally on 12 May, please visit: www.tuc.org.uk/new-deal-working-people-tuc-march-and-rally
- Real wages are not forecast to return to their pre-crisis level until 2025: www.resolutionfoundation.org/media/blog/2018-risks-being-a-standstill-year-on-pay/
- The TUC is calling on the government to improve pay and increase the supply of well-paid work by:
- Increasing the minimum wage to £10 as quickly as possible.
- Giving all public-sector workers a fully funded proper pay rise, after years of pay cuts.
- Raising public investment to the OECD average of 3.5% of GDP, so that the UK has the infrastructure needed to attract business and create well-paid jobs.
- Establishing a National Investment Bank, with a remit to target communities where good quality and well-paid jobs are most needed.
- Strengthening collective bargaining rights for workers and setting up new bodies to negotiate pay in sectors where low pay is endemic, such as hospitality, agricultural labour and care work.
- The Trades Union Congress (TUC) exists to make the working world a better place for everyone. We bring together more than 5.5 million working people who make up our 49 member unions. We support unions to grow and thrive, and we stand up for everyone who works for a living.
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