16 July 2008
Families are unlikely to find any joy in the news that consumer prices index inflation has jumped to 3.8%, the Liberal Democrat Vince Cable has said. The Shadow Chancellor at the party claimed that there is now "no hope" of the Bank of England lowering interest rates in the near future and this will be a further strain on consumers. Mr Cable added that the current economic conditions are reminiscent of the 70s, when inflation and unemployment levels were both rising. Moreover, the fact that personal debt - created on personal loans - has not been considered by the government will lead to even more problems, he asserted. He commented: "Gordon Brown is now facing the consequences of years of inaction over spiralling personal debt and the unsustainable bubble in the housing market." Because of the inflation figures, household budgets are set to be limited even more in 2008, Mr Cable suggested. The Office for National Statistics revealed that June's inflation rate was the highest it has been for 16 years.
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