CPI inflation reached a 3 year high of 5.2 per cent in September.
It is the highest recorded level since September 2008, and threatens to make life even more difficult for the 93 per cent of Brits who are worried about the effect of inflation on their finances, according to the Post Office.
The figures from the Bank of England reveal that the largest upward pressure to the change in CPI inflation came from increases in gas and electricity prices, unsurprising given recent announcements from the largest energy suppliers.
In fact, energy bills have caused such concern that the Government held the Energy Summit yesterday, where the ‘big six’ energy providers were called on to discuss their price hikes and ways to help consumers.
As a result of this inflation hike, 71 per cent of Brits will need to turn to their savings, credit cards and overdrafts to pay their bills, MoneySupermarket.com claims.
Commenting, Kevin Mountford, head of banking at MoneySupermarket.com said: “The rising cost of living is something UK adults have had to bear the brunt of over the last 12 months, with rising energy, fuel and food costs putting significant pressure on the nations’ wallets. The recent ‘energy summit’ shows the government’s focus on getting consumers to reduce their energy bills, but this will come as little comfort to those customers who are struggling to pay their current bills and don’t know which way to turn.”
Savers and the elderly are also feeling the pinch, Saga has done its own research into the real level of RPI inflation for the over 50s, and found it to be at 6.6 per cent for those aged 50-64 and 6.5 per cent for those aged 75 and over.
Commenting on The Saga Price Indices, Dr Ros Altmann, Director General Saga said: “The Government is ignoring the impact of inflation on older people.
“We are deeply concerned. Surging inflation and sinking savings income are damaging growth by hitting older generations who have cut their spending.
“Anyone who has bought an annuity is seeing their buying power erode month after month while policy makers worry about borrowers and banks.
“This is not a recipe for economic recovery.”
