Nearly 19 out of 20 Brits are worried about the rate of inflation on their monthly pay packets, new research has found.
The correct inflation rate at the moment is 5.2%, but research carried out by the Post Office, has revealed that 19 per cent of people admitted they were unsure how the rate of inflation impacted on their savings.The rising cost of living appears to be mainly to blame with British gas recently announcing that they are increasing gas prices further by 18% and their electricity prices by 16%.This is likely to increase annual household bills by up to £200, an added expense that many will simply not be able to cope with.An estimated 6.3 million UK households are currently living in fuel poverty due to the rising cost of energy bills.Within the last five years energy bills have increased from £600 per year in 2006 to £1,131 a year in 2011.Not only are people being forced to cope with high bills, but the price of food is also on the rise.
The British Retail Consortium recently found that food prices have risen to 5.7% in June from 4.9% in May.
With such high inflationary pressure on our savings, there is little wonder then that many households are turning to adverse credit loans and loans for tenants, just to keep their heads above water each month.
Additional research carried out recently revealed that while many of us see inflation as something that cannot be controlled, given the current economic situation, 36 per cent of Brits argue that many companies are using the increased costs to put up prices.