Resolution Foundation’s forecast prompts new concerns about household budgets as planned cut in universal credit looms
The government should prepare for a jump in inflation this year that will eat into household living standards and force more low-income families into poverty, according to the Resolution Foundation.
Inflation is on course to rise above 4% in the next few months as the economy opens up and consumers begin to spend some of the savings they have built up over the past 16 months, the thinktank says. Rising prices will squeeze average household incomes by £700 by the start of next year with low-income families among the worst affected, it forecasts.
