Children hit by soaring ‘kidflation’ - Savings - News - Moneyfacts

News

Children hit by soaring ‘kidflation’

Children hit by soaring ‘kidflation’

Category: Savings

Updated: 01/08/2011
First Published: 01/08/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

It's not just adults who are being hit by rising costs, as 'kidflation' has been on an upward trend over the last three years.

Research by Santander focussed on the Retail Prices Index for goods and services typically purchased by the UK 's five million 10-16 year-olds and compared it with the rate of inflation for all goods and services.

It found that 'kidflation', as it has been dubbed, has increased the price of goods routinely bought by children by 14.3% between June 2008 and June 2011 compared to just 8.5% for products and services in general, meaning children have been significantly worse-affected by the rising cost of living.

The figures will come as a worry to hard-up parents, many of whom will fear that the cost of keeping their children entertained during the summer holidays could have an adverse effect on the family finances.

Contributing to this impact on children has been a 24% increase in the cost of sweets and chocolates and a 16.2% increase in the cost of soft drinks.

Children's clothing has risen by 17.4%, the cost of entertainment and other recreation has increased by 13.6% and there has been a 10.4% increase in telephone costs, which include mobile phones and text messages.

The financial situation for children is exacerbated by the revelation that almost half of parents surveyed say they have either reduced or stopped pocket money altogether or have started making their children earn it around the house due to difficult economic circumstances.

With the pinch setting in, two-thirds of young people (68%) have noticed the things they spend their money on have become more expensive recently.

"Inflation is generally considered to be something that only affects adults, but it's evident from our research that children have been impacted too while inflation has been creeping up over the past few years," said Nici Audhlam-Gardner, director of banking at Santander.

"Children are seeing the costs of their everyday purchases rising at a very worrying rate, and parents are also being impacted with the costs of children's items apparently increasing more than the standard adult measure of inflation."

Find the best savings rates for you - Compare savings accounts

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

6 of the best monthly interest savings accounts

Monthly interest savings accounts pay interest on your savings each month – as opposed to yearly – and therefore allow you to take a regular income from your hard-earned cash.

Savings being used as a festive financial buffer

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

6 of the best easy access savings accounts

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.
 
Close