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thomas davison

Cost of living is five times higher than the average pay rise, official figures showDrop in inflation down to early Easter, say experts
Food prices have jumped by 4.2 per cent, gas bills by 15.4 per cent and electricity bills by 8.1 per cent
Average family will need an extra �1,035 to maintain the standard of living they had last year
By Becky Barrow
PUBLISHED: 15:34, 22 May 2012 | UPDATED: 15:34, 22 May 2012

'Getting poorer': Hikes in bills and travel costs are making it increasingly difficult for families to keep up (posed by model)
The cost of living in Britain remains cripplingly high, with inflation currently five times greater than the average pay rise given to workers.

The Office for National Statistics revealed the consumer prices index measure of inflation dropped from 3.5 per cent in March to three per cent in April.

But the average pay rise is a paltry 0.6 per cent, far behind the high cost of living, which experts point out means �people are still getting poorer every month�.
In a further blow, the long-awaited drop in inflation to its lowest rate for more than two years came because of largely superficial reasons.

This year�s eye-watering hikes in household bills and overseas travel were not included in April�s inflation figures because Easter was much earlier this year than it was last year.
For cash-strapped families, the pain remains, with almost all their bills continuing to rise far more quickly than the modest rise in their take-home pay.
Every Easter, the cost of air fares and sea fares rockets to take advantage of people who want to go abroad for the holiday, such as parents with school-age children.

More...Eurozone crisis 'has left families �18,000 poorer' as value of whole economy slumps by �470bn

The ONS said around half of the drop in last month�s inflation figure was caused by this year�s early Easter holiday.

Economists said the drop in inflation was �distorted� by the timing of the four-day holiday, with others saying it could just be �a statistical quirk.�
The bills nobody can avoid, such as food and heating, keep on rising.

Over the past year, food prices have jumped by 4.2 per cent. Gas bills are 15.4 per cent higher than last year, while electricity bills are up 8.1 per cent.

In April, the ONS said petrol prices reached a record of �1.42 per litre, up 3.2p per litre, and diesel prices also hit a new all-time high of �1.48 per litre, up 2.1p.

The average family must spend an extra �1,035 if they want to maintain the same standard of living they enjoyed last year, according to the retirement income firm MGM Advantage.

For many families, this is impossible, and they are having to make drastic cutbacks or eat into their savings to stay financially afloat.

Brendan Barber, general secretary of the Trades Union Congress, said: �With earnings growing by just 0.6 per cent, people are still getting poorer every month.�

To make matters worse, economists predict inflation will not continue on its downward path.
Andrew Goodwin, senior economic adviser to the accountant Ernst & Young�s Item Club, said: �These figures were heavily influenced by Easter being earlier this year, with the impact on air and sea fares reducing inflation by almost 0.3 percentage points.

�But we would expect this to reverse next month.�

Last week, the Bank of England�s authoritative Inflation Report warned inflation will remain above the target set by the Government of two per cent for even longer.

It said: �Inflation [is] likely to remain above the two per cent target for the next year or so.�

Saga, the old age experts, said inflation is hurting older people more than younger people.

Since September 2007, the retail prices index measure of inflation has gone up by 16.6 per cent for the general population � but by 22.2 per cent for those aged 75 and above.

This is because elderly people do not benefit from the drop in mortgage interest payments, unlike young people, but continue to spend their money on items which are going up, such as food.

As far as I can see the British people are paying the price for being in the EU, and will continue to do so even when the majority of the people want out.
Wait until our country is crowded out with Greeks etc, never mind inflation you will be lucky to have a home and food on the table.

2Anne · Joined: 04 May 2008 Posts: 399 Location: Norfolk

True words about the influx of Southern Europeans on the make.
Most of our income comes from rental property and rents are down about 20% on six years ago. This means we have less income.
We are not exactly on the breadline but I think everyone is feeling the pinch ourselves included.
If the euro collapses sterling will go down the shoot. I think getting into the EU is the biggest mistake for the UK since the Norman invasion.