Motion S5M-05004: Increasing inflation

03 Apr 2017

That the Parliament notes the reported comments from EY Item Club economists that lower income households will not see any positives from the 12.5% jump in the net financial wealth of people in the UK; understands that this huge growth in the last year has come from increasing share prices outpacing rising inflation and slow wage growth; further understands that this means that only the relatively well-off who own financial assets are likely to see any benefit, while people on lower incomes will feel the bite of increasing inflation; believes that people on lower incomes will be hit even harder by rising prices as they tend to spend more of their income than high earners, and further believes that the expected 2.8% increase in prices, with just 0.1% real terms growth in household incomes, shows that economic growth and recovery must be broad and include everyone in society, regardless of income.