Latest News

Two thirds of Britons report cost-of-living squeeze – ONS

2/2 © Reuters. Shoppers browse clothes in a store in central London February 15, 2011. Inflation jumped to twice the Bank of England’s target in January, prompting Bank Governor Mervyn King to acknowledge that interest rates might rise more rapidly than economists had e 2/2

By William Schomberg

LONDON (Reuters) – Two thirds of people in Britain reported that their cost of living rose last month as inflation accelerates, even before a big rise in domestic electricity and gas tariffs in April, the country’s statistics office said.

A third of those who reported their cost of living had gone up were cutting back on domestic fuel use, and just over half said they were spending less on non-essentials, the Office for National Statistics said.

A surge in global energy prices has pushed Britain’s main inflation rate to a 30-year high of 5.4% – mirroring sharp rises in price growth in many other countries – and the Bank of England is expected to raise interest rates for a second time in two months on Thursday.

Domestic fuel prices are expected to jump by a further 50% when a twice-yearly review of regulated tariffs takes effect in April, just as higher social security contributions are due to take a further chunk out of household budgets.

Prime Minister Boris Johnson’s government is looking at ways to soften the increase in energy prices for people on lower incomes. The ONS said higher power costs were disproportionately hitting people on lower incomes. Its data showed the poorest 10% of households spent 7% of their disposable income on gas and electricity, compared with 2% for the richest 10% of households.

Of those who said their cost of living had gone up, 87% said food they bought was more expensive followed by 79% who said their gas or electricity bills were higher.

The ONS’s findings were based on a survey of nearly 4,500 people conducted between Jan 6. and Jan. 16.

Two thirds of Britons report cost-of-living squeeze – ONS

Disclaimer:Fusion Mediawould like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:Latest News