The standard of living is at a record low, according to official data

The standard of living fell again at the beginning of the year, marking a decline for four consecutive quarters cash income for the first time since the beginning of the recording.

Official figures show that rising prices reduced the solvency of British households by an average of 0.2% between January and March.

The Office for National Statistics reported that inflation was 1.7 percent for the quarter, outpacing revenue growth by 1.5 percent.

The new data confirmed previous estimates showing this economic growth has slowed noticeable in the first three months of the year.

Gross domestic product (GDP) – an indicator of the size of the economy – increased by 0.8 percent compared to 1.3 percent in the previous quarter. GDP was 0.7 percent higher than in the last quarter of 2019, before the pandemic.

As for Chancellor Rishi Sunak, business investment fell 0.6 percent and remained 9.2 percent below its peak before the pandemic. Lack of investment indicates low confidence in the future of the economy and may hinder recovery.

The figures do not take into account the last three months, during which rising prices for basic necessities turned into a crisis, which pushed electricity bills to around £ 2,000 for the average family.

Inflation is at its highest in four decades, and the head of the Bank of England warned on Thursday of the worst.

Andrew Bailey said price increases would hit the UK harder than any other major economy and that production is likely to weaken sooner and be more intense.

Martin Beck of the EY Item Club said: “The contraction in household payments should continue as energy prices rose by more than 50 per cent in the second quarter and taxation of individuals rose. further large increase in energy prices is likely in October.

“Thus, when savings rates are already below ‘normal’ levels, hopes of avoiding a consumer recession lie with households that have accumulated ‘extra’ savings during a pandemic by spending a significant amount of those funds.”

The ONS data also showed that the UK’s current account deficit – the difference between the value of goods and services that the UK imports and the goods and services it exports – increased to a record £ 51.7 billion, or 8.3 per cent of gross domestic product. .

It was the biggest deficit since recording began in 1955, according to ONS.

But she issued a warning about the figures, saying changes in data collection after Brexit have affected trade in imports of goods and foreign direct investment, which she is investigating.

The standard of living is at a record low, according to official data

Source link The standard of living is at a record low, according to official data

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