Inflation rise threatens to lower standard of living

14 August 2012

Posted by Kim Bardsley

A sudden rise in the rate of inflation will lead to Britons having to spend more money to maintain the same standard of living, according to one organisation's research.

The Office for National Statistics said today (August 14th) that the consumer prices index (CPI) measure of inflation climbed to 2.6 per cent in July, up from 2.4 per cent in June.

Meanwhile, the retail price index went up to 3.2 per cent despite previous forecasts of 2.8 per cent, bad news for commuters waiting to see how much their rail fares would increase.

MGM Advantage said the figures mean the UK will need to find an extra £23.6 billion a year to maintain the same standard of living it enjoyed a year ago.

This amounts to £897 a year per household, a frightening figure for the elderly and those on low incomes, who will have to implement increasingly strict budgeting measures to afford essentials such as food and home heating oil.

Aston Goodey from MGM said: "The surprise rise in inflation will come as a shock for many people who continue to feel the pinch. Inflation is particularly damaging for retirees."

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