The Centre for Economics and Business Research (CEBR) has said rising inflation levels will have real effects on families’ cost of living.
For the poorest families, financial struggles may result in debt management issues or credit card debt.
CEBR economist Charles Davis said “clearly, in real terms, the average family is probably getting poorer,” when the average earnings growth of around 3.8 per cent is compared with inflation at 4.4 per cent.
“Their budgets have been squeezed by the high cost of food, transport, housing and housing goods and services such as utility bills,” he explained.
According figures published by the Office for National Statistics this week, food inflation rose to 13.7 per cent in the annual rate in July from 10.6 per cent in June. Gas, electricity and other fuels increased in the annual rate to 16.1 per cent.
People concerned about debt problems ensuing from such rises may want to seek professional advice.