Research Reveals Rising Inflation Costs Of Britons

A new study has unveiled the continued financial strain which many Britons are under.

In the latest figures released by the Alliance Trust Research Centre, it was indicated that the majority of Britons are facing a rise in living costs which outpaces the official figure as set by the government. However, it seems that the older a consumer is the more likely it is that their inflation costs are to rise with those over the age of 75 indicated as being exposed to a inflation rate of 5.4 per cent, compared to 4.9 per cent for 65 to 74-year-olds. Meanwhile, 50 to 64-year-olds and 30 to 49-year-olds were shown to face rates of 4.7 and 4.2 per cent respectively. It was shown that only those under the age of 30 believe they are facing a rate of inflation which matches official government figures.

Research from the firm indicated that the price of petrol has risen by almost a quarter (24 per cent) during the past year, with electricity costs up by more than 11 per cent. The study also showed food prices have increased by around 11 per cent, with the expense of dairy produce surging by some 19 per cent. Oil and fat prices, meanwhile, have seen growth of 28 per cent. It was reported that such costs are having a particular impact on younger people with those over the age of 75 allocating some 16 per cent of their annual household budgets to food, in comparison to the nine per cent which the under-30s pay out. Meanwhile, the study indicated that young people spend a higher proportion of their money on footwear, audio-visual items and clothing, areas which are seeing a decrease in costs.

In facing continued increases in the cost of living it may be possible that consumers find they encounter difficulties in managing other areas of financial commitment. This might have an impact on their capacity to make repayments on personal loans, credit and store cards, mortgages and utility bills.

Commenting on the figures, Shona Dobbie, head of the Alliance Trust Research Centre, said: “This pick up in inflation is particularly worrying for the consumer as it is being driven by higher prices for basic goods and services. This leaves us all with less money to spend on the items where prices continue to fall. Unfortunately, we expect little respite from this situation over the next couple of months as the oil price is expected to remain high and gas and electricity prices are expected to move higher. This means that headline inflation is likely to rise a bit further in the next few months.”

She went on to report that the danger presented by high levels of inflation means that policymakers are forced “to leave interest rates higher for longer, increasing the risk of an even greater slowdown in demand and threatening the economy as a whole”.

Consumers worried about their capacity to manage their money in the face of rising living costs might wish to consider taking out a loan. In getting a low-cost loan it may be possible for borrowers to meet various spending commitments at once leaving them with a single affordable monthly repayment to make. For those with concerns about handling their spending, obtaining comprehensive financial advice could also be recommended.

In a study carried out by Zurich last month it was indicated that 57 per cent of Britons are yet to ask for help with money from a qualified financial adviser. However, it was stated that those with young families who choose not do this could be placing themselves under the most monetary pressure as they have to make provisions not only for their own future but for their children’s as well.

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