By Bill Lehan
The inflation gap experienced by the UK’s richest and poorest households has widened to its widest level in at least 16 years, according to a report by the Resolution Foundation think-tank.
Rising energy bills as well as higher food consumption have pushed the overall inflation rate in the UK to a 40-year high of 9%. But headline inflation for the poorest tenth household is even higher at 10.2% because they spend more of their income on energy bills, according to an analysis by the group.
The foundation says the inflation gap between the rich and the poor – those facing an 8.7% lower rate – is the widest since the record began in 2006.
“As the government prepares a new round of living support, it is clear where it is most needed,” said Jack Leslie, a senior economist at the foundation. “The Chancellor should prioritize significant targeted assistance to low- and middle-income families.”
The foundation is calling for targeted assistance to poor families through existing credit and state pension increases, or existing benefits through employment allowances, the provision of winter fuel or warm home discounts.
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