Madeleine Bunting: New inflation figures illustrate the widening rich-poor divide in this recession | Comment is free | guardian.co.uk: “It’s one set of inflation figures for the rich and another for the poor. Behind the headline figures on inflation that came out yesterday is a much more complex and disturbing picture of how the richest and poorest households are affected completely differently.
The Institute of Fiscal Studies show in a careful analysis that the richest households are experiencing falling prices while the poorest face inflation of nearly 5%. The disparity between the two is explained by the fact that those with big mortgages are enjoying a bonanza as interest rates have fallen to an historic low. Meanwhile the poor and elderly are the ones disproportionately affected by sharp rises in basics such as fuel, food and clothing.”