Grantham Institute responds to inflation figures for September 2023

Commenting on the publication today by the UK Office for National Statistics of the inflation figures for September 2023, Bob Ward, Policy and Communications Director at the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science, said:

“The latest inflation figures provide further evidence that our dependence on fossil fuels is continuing to drive the cost-of-living crisis. It shows once again why the Prime Minister’s decision to slow down the transition away from fossil fuels will be costly to households and businesses.

“The cost-of-living crisis was partly triggered by the rise in the European market price of natural gas following Russia’s invasion of Ukraine. Although the price of gas has fallen from its peak last winter, it is still higher than before Russia’s invasion, and British energy bills are still above pre-pandemic levels. Now the international market price of oil is rising because Russia and Saudi Arabia have decided to cut production, demonstrating the extent to which British motorists are at the mercy of a small cartel.

“Natural gas and oil produced by Britain is sold on international markets and do not protect British consumers from the volatility of international markets for fossil fuels. The only way to break this exposure is to accelerate the transition to domestic clean electricity production and the electrification of our economy, including heating and transport.

“The Prime Minister claimed last month that he would protect consumers against the costs of net zero. He should have admitted that slowing down the transition away from fossil fuels will cost British households and businesses even more.”

ENDS