THE rate of Consumer Prices Index (CPI) inflation in the UK in September, rose to 5.2% from 4.5% the month before.
A huge leap in food, gas and electricity prices was behind a large proportion of the rise.
Bills for gas, electricity and other fuels were up 18.3% on the year, while transport costs rose 12.8%. Food prices were 6% higher than last year. There were also large increases in air fares.
The 5.2% rate is the highest CPI measure since September 2008, and it has never been higher since the CPI measure was introduced in 1997.
The Retail Prices Index (RPI) – which includes mortgage interest payments – rose to 5.6% from 5.2%.
The latest RPI measure is the highest annual rate since June 1991.
The CPI Bank of England inflation target rate is 2%.
In fact, the policy of the Bank of England is to savage working class living standards by driving up inflation – in the hope that it will stimulate some production – using its plan to increase the amount involved in buying up bank debt to £275bn immediately, with a ceiling limit of around £500bn.
The latest figures amount to the working class being robbed twice over.
First of all, it faces an RPI inflation rate of 5.6% but, as well, the ‘rise’ in the state pension and Jobseekers Allowance will be set using the lesser CPI figure from this year!
The Bank of England is hoping against hope that the inflation rate will fall, and a sterling collapse will be avoided if basic commodity prices fall as the world economy deflates and production falls. This is despite the fact that energy companies are openly stating that ‘we’ face two decades of rising energy prices.
Also various groups of international speculators are buying up basic commodities for years ahead, and aim to make super-profits out of holding the world by the throat.
After these shock figures the trade unions have a duty to take action to defend their members’ jobs, wages, pensions and living standards which are being slashed by rising record inflation rates, as well as record rates of unemployment.
The bills for gas, electricity, other fuels and food are the key to the living standards of the working class and the middle class. The spending of millions of families is concentrated almost exclusively on paying energy bills, that have gone up by 18.3%, transport costs, which have risen by 12.3% and food, which rose by 6%.
This means that savage cuts are being imposed on the wages, pensions and benefits of workers. Wages are already being cut by employers who are pushing through huge wage cuts of up to 30%, wage freezes, and disguised wage cuts in the form of below inflation wage rises.
As well, there are the families who have seen their major breadwinner lose their job as part of the record rise in mass unemployment that is taking place!
There is only one answer to this critical situation.
The trade unions must defend every job and demand work sharing with no loss of pay – since it is not the working class that has caused the crisis.
The trade unions must draw up their own cost of living index and demand that wages are increased monthly to keep pace with the real inflation rate, to maintain the standard of living of workers and their families.
They must also demand a national plan to build millions of council homes to solve the housing crisis and provide millions of workers and youth with jobs and skilled training at trade union rates of pay.
This is the only way to defend the interests of the working class. The only solution to this crisis is however to bring down the coalition with a general strike, and bring in a workers government that will put an end to capitalism and bring in socialism.
