Householders feeling the pinch thanks to inflation - Economy - News |

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Householders feeling the pinch thanks to inflation

Householders feeling the pinch thanks to inflation

Category: Economy

Updated: 16/10/2013
First Published: 16/10/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
UK inflation held at 2.7% for the second consecutive month in September, which hasn't stopped householders feeling the pinch. In fact, they need to find an extra £679 per year just to maintain the standard of living they enjoyed 12 months ago, according to research by MGM Advantage.

The level of inflation has been largely led by the rising cost of fuel, food, housing and utility bills, and despite petrol and diesel prices being lower the main contributors to inflation are still rising high.

This means the average household will need to find an extra £679 per year just to make ends meet, something that's even more difficult when wages only rose by 1.1% over the last year, whilst figures show it's the elderly who are faring worst.

Retirees are being hit hard by the combination of spiralling living costs and low interest rates, with the over-75s age group spending the highest proportion of their income on gas and electricity (where inflation is rising above 8%) and on food (where inflation is up to 4.8%).

Even though the basic state pension is expected to rise in April, by £2.97 per week, this won't be enough to cover the rising cost of living for many retirees, meaning a lot will need to seek out alternative income solutions.

What Next?

Find the best savings rates to supplement your income

Use our online annuity planner to find out which annuity would suit your needs

Unlock a proportion of the value – or equity – you have in your home in exchange for a tax free lump sum

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 Any products featured may be withdrawn by their provider or changed at any time.