Food prices continue to soar

A recent report has shown that food prices are continuing to soar and add further pressure to already strained household finances, with food inflation thought to have gone up by around 7% in the space of a year. It is thought that the rate of inflation could rise even higher as a result of the increase in food prices, and many households are finding it harder and harder to keep up with costs, with living costs going up so sharply. Read more

Tags: weekly shopping basket, recent report, way, basket, shopping, arrangement, utility bills, shopping basket

Inflation ‘four times higher’ than official figures

The real rate of inflation is around four times what official figures say it is, according to a new survey.

A poll by Fool.co.uk suggests that 93 per cent of people “feel” inflation as being much higher than the current 2.2 per cent claimed by the government.

In fact, the survey puts the average “felt” level of inflation at 8.1 per cent, with five per cent of people putting the figure at 15 per cent.

People in their 40s are the hardest hit age group, experiencing inflation at an average of 8.8 per cent.

David Kuo, head of personal finance at Fool.co.uk warned: “The government can boast as much as it wants about its success over controlling inflation. However, people feel inflation through the shrinking pound in their pockets; they don’t experience it through a theoretical government shopping basket.”

In particular, the basket of goods used by the government to calculate inflation omits the cost of housing and mortgages.

The effect of inflation is being felt hardest by people in the West Midlands, where the average for all people was found to be 8.8 per cent. Northern Ireland has the lowest rate of “felt” inflation, at 6.8 per cent.

Tags: inflation, pockets, David Kuo, finance, basket