The poorest households are bearing the brunt of rising prices, with inflation of almost 11% driven by rising energy bills, experts have warned. Official statistics showed Consumer Prices Index inflation hit a 40-year high of 9% in April, but analysis by economic think tanks showed the squeeze on budgets faced by the poor was even greater.
Institute for Fiscal Studies (IFS) analysis indicated the bottom 10% of the population in terms of income faced an inflation rate of 10.9%, while for the richest 10% it was 7.9%, a full three percentage points lower. The Resolution Foundation (RF), which focuses on living standards, estimated that the poorest households faced a rate of 10.2%.
The difference is largely due to soaring energy bills, with the price cap increasing by £693 for the typical family in April. For the poorest households, energy costs make up a greater proportion of expenditure than for wealthier counterparts.
