Cllr Shafique Choudhary

Cllr Shafique Choudhary
Cllr Shafique Choudhary

Friday, 31 January 2014

Household income squeeze


Data from the Institute for Fiscal Studies (IFS) show that median income is more than 6% lower than the peak in 2007-08, ahead of the financial crisis, and that income is unlikely to recover to its pre-crisis level by 2015/16. The IFS said better-off households had seen bigger proportionate falls in incomes while the poor had experienced higher inflation than the rich over the period. The CPI has increased 20% since 2008 but the prices of food and energy – two things that poorer households spend a larger slice of their income on – have increased 30% and 60% respectively. Meanwhile, record low interest rates have seen mortgage costs fall – something that has not helped the relatively poorer and younger people who rent their homes. The IFS’s Abi Adams said: "Differential inflation has largely undone what would otherwise appear to be a significant reduction in inequality

with courtsey of Financial Times 

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