THE cost of living is leaping ahead of income for ordinary working people, inflation figures published yesterday reveal.

The Office for National Statistics (ONS) said the inflation rate was 2.3 per cent in March, unchanged from February.

But food and clothing prices leapt and household saving rates hit a record low as consumers dug into savings to maintain living standards.

Centre for Economics and Business Research economist Nina Skero said: “Today’s release confirms our expectations that 2017 will see the end of the consumer spending boom which has driven economic growth in recent years.”

And Laurie Macfarlane of left think tank the New Economics Foundation warned: “Millions are struggling under record levels of debt.

“People’s real incomes still haven’t recovered from the financial crisis because of low wage growth and high living costs and those on low incomes are suffering the most.”

A Treasury spokesman insisted the government is helping families by cutting income tax for 31 million people, freezing fuel duty and upping the so-called national living wage to £7.50 an hour.

However, shadow chief secretary to the Treasury Peter Dowd said: “Today’s inflation figures are yet more worrying news for working people. “Living standards are being squeezed, with inflation rising and wage growth slowing.

“As a result, real pay is beginning to decline again, contracting at the start of 2017 for the first time since August 2014.”

TUC general secretary Frances O’Grady said: “Rising prices and sluggish pay increases mean that real earnings growth has now ground to a halt. “Without government action, another living standards crisis is on the cards.

“We urgently need more investment in skills and infrastructure to build strong foundations for better-paid jobs.”