Inflation back on the rise

Consumers struggling to make ends meet may find the going even harder after inflation rose in October.

The Office for National Statistics (ONS) revealed today (November 13th) that the Consumer Prices Index measurement jumped from 2.2 per cent to 2.7 per cent last month. At the same time, the Retail Prices Index rose from 2.6 per cent to 3.2 per cent.

It revealed the biggest contributor to the increase was the imposition of higher university fees this year, something that will add to the debt owed by young people who enter higher education.

However, a far more wide-reaching effect may arise from the second biggest contributor to the increase, with food and non-alcoholic drinks jumping in price. Among these items, potatoes, fruit and confectionary increased the most.

Some of these factors may be due to the impact of the poor summer on domestically-grown crops, but the ultimate consequence is that food shopping will become more expensive.

For people who are struggling with debt and whose situation will have been worsened by inflation, the rising cost of living may make it harder than ever to spare the cash to pay off borrowing.

Credit card debt is one area where the size of repayments can vary and the level of interest paid in the longer term is much higher for those who can only pay off the minimum amount.

Analysing the figures, MGM Advantage said Britons would need a collective £24.5 billion extra to maintain the standard of living of 12 months ago – or £932 per household.

Commenting on the situation, distribution and marketing director at the firm Aston Goodey said: "The rise in inflation will continue to put financial pressure on households across the UK and we have yet to see the impact of the recent increases in energy prices feed into the figures."
 
Posted by Paul Thacker