The Office for National Statistics says UK inflation is ‘similar’ to poorer and wealthier households

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Official figures on Friday showed prices in British supermarkets are rising at “similar” levels for both the poorest and wealthiest households, undermining claims that inflation was much higher for lower-income households.

The Office for National Statistics was quick to release the empirical data in response to criticism from Jack Monroe, a food blogger and anti-poverty activist, who said the index “significantly underestimates” the reality of inflation for the poor.

Only in 2008 and 2011 — when food and energy inflation was very high — were there significant periods when the experience of inflation differed markedly across different households, the Office for National Statistics said.

However, in April, when energy bills are set to rise nearly 50 percent as a result of the energy price cap being raised if the government does not intervene, the cost of inflation will rise for poor households, according to the institute. For Financial Studies – a think tank.

In the ONS analysis, the statistical agency studied the purchasing habits of poorer and wealthier families, as well as those in the middle of the income distribution, and identified different inflation rates for each depending on the overall pattern of spending.

The agency found that poorer households allocate more of their budget to food and energy, while richer households spend more on gasoline and discretionary items such as restaurant meals and vacations.

With gasoline costs currently high, with prices up 26.8 percent in the year to December and gas prices up 28.1 percent over the same period, the rate of inflation between the different groups has been “similar,” according to the Office for National Statistics.

“High-income families’ experience with inflation is driven by higher transportation costs, on which they spend a greater proportion of their spending compared to lower-income families, while housing-related costs for lower-income families are a more important factor,” he said.

The differences between groups are due to differences in spending patterns, the Office for National Statistics noted, as it used the same price quotes it collects each month for 700 spending items.

The agency did not address the possibility of high inflation in low-cost food, which Monroe said is at the heart of the problem for the poorest families.

However, retail experts said supermarkets are not dropping large numbers of basic food groups from their stores, even though some have changed the lines offered in certain stores.

In response to Monroe’s claims that the prices of many commodities have doubled, Steve Dresser, CEO of consultancy Grocery Insight, said: “Food prices are going to rise, and there is no way around them. But they are not rising anywhere near the rate being reported.” .

The Office for National Statistics reported that food prices were 4.5 percent higher in December than a year earlier, lower than the overall inflation rate of 5.4 percent, although prices have risen rapidly in recent months.

The statistics agency said it is working to improve inflation figures further and will publish new indicators of household costs, which are intended to better reflect the price experience of households.

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