Dr. Tom McDonnell:

The CPI probably underestimates the cost of living crisis for lower income households, particularly at the moment because it is focused on energy in housing. What will happen to price inflation over time is that there will always be compositional effects. At the moment, it is energy, but later on it could be something else. Looking to the medium to long-term, I would say that it will be better for society overall, but certainly for poorer households who tend to be more reliant on public services. Women and children in particular tend to be disproportionately reliant on public services. An emphasis over the medium term on universal basic services would benefit those groups and overall would have a very progressive effect. Effectively, it would decommodify a part of the economy which makes market incomes less relevant, and that is better for poorer households in the long run.