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Daily Record
Daily Record
Politics
Chris McCall

Inflation hitting Scots hard as cost of food and fuel remain 'eye-wateringly high'

Inflation continues to hit ordinary Scots hard with the cost of food and fuel remaining "eye-wateringly high".

The rate at which prices rise on average remained 8.7 per cent in May, the same as the previous month.

Interest rates are now widely expected to rise to 4.75 per cent on Thursday - meaning higher monthly payments for many Scots with mortgages.

But the least well-off households are being hardest hit by so-called "sticky inflation".

Experts at the Resolution Foundation warned inflation rates for the poorest tenth of households are 25 per cent higher than those for the richest tenth of households as they spend more of their income on food and energy bills.

The Office for National Statistics warned core inflation was now at its highest level in 31 years.

And the UK's debt pile reached more than 100 per cent of economic output for the first time since 1961 as government borrowing more than doubled in May, according to official figures.

Roz Foyer, the general-secretary of the STUC, said: "Far from coming down, inflation remains stubbornly high and is eating further into the living standards of ordinary working people across Scotland.

"The biggest rises continue to hit workers the hardest as food, energy and fuel costs remain eye-wateringly high. We need to see real cost of living pay rises and we need to see them now.

"The Scottish Government must immediately scrap its punitive public sector pay strategy of 3.5 per cent and ensure workers get a decent pay rise that allows them to live with dignity in Scotland."

Labour's Shadow Chancellor Rachel Reeves blamed the Conservative UK Government for failing to "get a grip" of inflation. James Smith, research director at the Resolution Foundation, said: "Sticky inflation is extending the cost-of-living crisis for everyone in Britain, and hardening the mortgage crunch for the seven million households who have a mortgage.

"The latest data will reinforce market expectations of how high interest rates will go, and put more pressure on the Bank. This is bad news for anyone with a mortgage, who will be looking out for more positive signals before their current deal comes to an end.”

Myles Fitt, financial health spokesman at Citizens Advice Scotland, said: "People in Scotland are facing a miserable summer of high inflation and likely higher interest rates. Even with warmer weather in theory reducing people’s energy use, the cost of living is simply unsustainable for so many people.

"We have seen rising demand for food insecurity advice and people turning to commercial credit to simply afford the essentials. Let’s be clear - people, through no fault of their own, are taking on debt to afford food, shelter and energy because their incomes simply can’t keep up with rising costs.

"That will mean a personal debt crisis for many even if inflation returns to something considered a manageable level. People worried about money and bills can seek advice from the CAB network, either online or in person. Our advice is free, impartial, and confidential and can get real results.”

It comes as SNP MP Patricia Gibson quizzed Rishi Sunak on what his government was doing to lower inflation. He told the Commons today: "I have always been very clear, inflation is putting pressure on family budgets and that’s why the UK Government has taken decisive action to support families through this difficult time, including households in Scotland, who are receiving considerable support not just with their energy bills, but also the most vulnerable as well."

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