Inflation Winners & Losers

 

Inflation has risen to 3.0%, the highest level since April 2012. Time will tell if this level is to hang around for long but there are always winners and losers from inflation in the short term.

 

The biggest loser will be benefit claimants due to the Government’s decision to freeze working-age benefits in cash terms until March 2020. Businesses are also bracing for an increase in rates, which will rise by £1.1 billion next year following the latest inflation data. Insolvencies are expected to rise over the next two years as a consequence.

 

The biggest winner has to be those in receipt of the State Pension. The annual rise in the State Pension is calculated using the rate of inflation for September and this will see the State Pension rise by 3%. The Government are also a big winner given the boost to the Treasury’s coffers by £4.6 billion from the freezing of working-age benefits!

 

If you are looking for a clear villain to blame for inflation……that’s an easy one. Brexit of course!!!! The value of sterling is down 12% against the dollar and this has increased the price of imports and created inflation.

 

That bloody Brexit has a lot to answer for!