Financial squeeze ‘could be here to stay’

The financial squeeze currently being felt by households across the UK could be here to stay, according to one expert.

Reflecting on the recent price rises for food and fuel being seen around the country, Chris Tapp from Credit Action maintained that consumers should expect to see more of the same.

For people with debt management problems in particular, it is a good idea to assume that the economic situation will result in household finances being pressurised more and more over the course of this year, he suggested.

“People should be looking and thinking about this as if it is going to be around for the long term,” he said.

“It is always more sensible to plan on that basis and in the current climate that could well be the case.”

Earlier this week, the Office of National Statistics reported that consumer price inflation was driven to its highest level since March 2007 by rises in food and fuel costs.