Question to the HM Treasury:

To ask Her Majesty’s Government what assessment they have made of the impact on living standards of future rises in the rate of inflation.

The Office for Budget Responsibility (OBR) expect inflation to increase to 1.4 per cent by the end of 2016 and peak at 2.6 per cent in Q2 2018. Despite this, by 2021 living standards, as measured by real household disposable income, are forecast by the OBR to be 2.8 per cent higher than they are today. The government is taking steps to support real incomes and employment, including raising the National Living Wage, raising the personal allowance, freezing fuel duty, and providing more affordable homes.