Is Jack Monroe right about inflation hurting the poor the most?

Poverty campaigner Jack Monroe has claimed that official inflation statistics understate the impact of price rises on the poor. Is she right?

Man picking fruit in a supermarket
Supermarkets have been quietly withdrawing their low-price ranges
(Image credit: © DANIEL LEAL/AFP via Getty Images)

With price inflation at multi-decade highs in the UK – as well as in other big economies, including the US and Germany – the issue has shot to the top of the policy agenda. Central bankers are under attack for having lost control and politicians for the cost of living crisis. There’s a debate over whether the inflationary surge is transitory (caused by the unexpectedly strong post-pandemic bounceback and constrained supply), or something more permanent.

The stakes are high, says Chris Giles in the Financial Times. If policymakers wrongly judge that high inflation has become entrenched, they risk “clamping down too hard on spending, weakening economies as they emerge from Covid-19, lowering incomes and destroying jobs”. But if they underestimate the true threat of persistent inflation, they will be “forced to take tougher action later to eliminate the danger, just as happened towards the end of the 1960s with equally serious consequences”. Either way, it’s vital to ensure inflation is measured properly.

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Simon Wilson’s first career was in book publishing, as an economics editor at Routledge, and as a publisher of non-fiction at Random House, specialising in popular business and management books. While there, he published Customers.com, a bestselling classic of the early days of e-commerce, and The Money or Your Life: Reuniting Work and Joy, an inspirational book that helped inspire its publisher towards a post-corporate, portfolio life.   

Since 2001, he has been a writer for MoneyWeek, a financial copywriter, and a long-time contributing editor at The Week. Simon also works as an actor and corporate trainer; current and past clients include investment banks, the Bank of England, the UK government, several Magic Circle law firms and all of the Big Four accountancy firms. He has a degree in languages (German and Spanish) and social and political sciences from the University of Cambridge.