Britain’s poorest ‘hit worst by inflation’
The most financially vulnerable British citizens are being hit hardest by current inflation rates, according to reports.
A study from the Alliance Trust Research Centre showed that inflation for the poorest members of British society has been 34 per cent higher than measures, such as the consumer price index, would suggest.
Moneyhighstreet.com reports that households with incomes lower than £7,000 are spending 41 per cent of their total budgets on proportionally more expensive items.
Shona Dobbie, head of the Alliance Trust Research Centre, commented: “Our two-year study has shown consistently that the UK’s lowest income groups are facing an inflation rate which is substantially higher than the average headline inflation rate.”
“Inevitably the lowest income group will spend more of their budget on necessities such as housing and utilities and unfortunately it is these goods that have seen the sharpest increase in prices over the last two years,” she added.
The report adds that factors such as these are contributing to Britain’s growing consumer debt bill of more than £1 trillion.
People who are having problems meeting their bills and repayments may wish to seek debt help.
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