Think tank the Resolution Foundation has found that a large cost-of-living gap between rich and poor households remains despite inflation continuing to ease.
In response to data published by the Office for National Statistics (ONS), the Foundation stated that whilst inflation eased towards the end of 2022, it remains particularly high for low income households who ‘fall on the wrong side of a large cost-of-living gap’.
It branded an acceleration in food price inflation in December as ‘worrying’, and said that inflation will need to fall back this year to help ease the pressure on low income families.
Research carried out by the Resolution Foundation revealed that the poorest tenth of households experienced an average inflation rate of 11.9%, compared to 9.2% for the richest tenth of households.
Commenting on the findings, Jack Leslie, Senior Economist at the Resolution Foundation, said: ‘Inflation looks to have peaked last October as it continued to ease at the end of last year. The speed at which inflation falls in 2023 will help to determine the duration of the cost-of-living crisis.
‘Inflation remains particularly high for low income families who are on the wrong side of a large cost-of-living gap due to the high cost of energy bills and food.’
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