Essential Goods Price Rises Hitting The Poorest Hard - Cable

12.04.00pm BST (GMT +0100) Tue 17th Oct 2006

Responding to the announcement that inflation remained above the Bank of England's 2% target for the fifth successive month, Liberal Democrat Shadow Chancellor, Vince Cable MP said: "Today's cost of living figures show the highest rise in essential prices for food, housing, fuel and light in the series since it began.

"Those on low incomes who spend the majority of their income on essential items are experiencing rates of inflation more than four times the average.

"Pensioners and hard-pressed families are really hit when their gas bill, their council tax and their rent or mortgage payments go up, leaving them with no spare cash. Falling prices on luxuries keep the headline figures down, but that is no comfort to people who can't afford them.

"With another rise in interest rates now widely expected in November it is going to be a tough winter for those surviving on low incomes. Gordon Brown must take his attention off Number 10 and back on to the economy."