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Children hit by soaring ‘kidflation’

Children hit by soaring ‘kidflation’

Category: Savings

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

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 It is now over 6 months old so the content may be out of date.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."

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