PRN: Rising Inflation is a Setback for UK Households

Despite inflation falling over the last six months, it is clear that the pressures on inflation are not easing and it may be some time before it moved towards The Bank of England's own inflation target of two per cent.

Persone Paul Lawler, Kevin Mountford, April
Luoghi Inghilterra, Regno Unito, Chester, Wé
Organizzazioni The Bank
Argomenti internet, software, reti

17/apr/2012 13.46.22 PR Newswire Turismo Contatta l'autore

Questo comunicato è stato pubblicato più di 1 anno fa. Le informazioni su questa pagina potrebbero non essere attendibili.

Rising Inflation is a Setback for UK Households

 
[17-April-2012]
 

CHESTER, England, April 17, 2012 /PRNewswire/ --


  • Basic rate taxpayers need a rate of 4.38 per cent to gain benefit in real terms, increasing to 5.83 per cent for higher rate taxpayers
  • 'Life in Limbo' Brits need the cost of living to reduce to get their plans back on track

Today's announcement by The Bank of England that inflation (CPI) has risen for the first time in six months to 3.5 per cent, from 3.4 per cent last month, is a setback for UK households according to MoneySupermarket who are struggling to cope with the high cost of living.

Research by MoneySupermarket reveals a staggering two thirds of Brits (65 per cent) have been forced to put important life decisions on hold due to the current economic climate and the high cost of living. The overall top areas people have put on hold include home improvements (27 per cent) and short term saving (21 per cent).  Those aged 18-34, often considered the 'prime age' as far as important life changes are concerned, have had to put the most on hold; 17 per cent have put off buying a house and 10 per cent have delayed the sound of wedding bells.

The research also asked what would need to happen to get their plans back on track; an increase in income (52 per cent) was the number one remedy, followed by 46 per cent who said the cost of living needs to reduce.

Savers have also lost out due to high inflation levels, as they have struggled to gain a real return on their saving pots. To beat inflation, basic rate tax payers now need an account paying at least 4.38 per cent to gain benefit in real terms from their savings, increasing to 5.83 per cent for higher rate tax payers, and 7.00 per cent for 50 per cent tax payers. Only a handful of fixed rate Cash ISAs and Fixed Rate Bonds beat the rate for basic rate taxpayers, while no account beat the rate if you pay a higher rate of taxation.

Kevin Mountford, head of banking, at MoneySupermarket.com, said: "The rise in inflation once again impacts UK households who have been struggling to cope with rising costs, and this increase is disappointing given inflation has been falling since late last year.

"Our research found people have been under a lot of strain from rising living costs and lack of pay increases, with many being forced to delay exciting and important life stages such as having children or buying their first home. High inflation combined with low interest rates has been a real problem for UK savers, especially those who rely on savings for a regular income.

"Only a handful of savings accounts currently beat inflation, and in most cases you have to tie up your funds in a fixed rate product to gain benefit. Consumers need to make sure they are on the best deals possible to maximise any returns. The top paying savings accounts currently offer rates over six times that of base rate so by choosing these, you can reduce the impact inflation has on your pot. Despite inflation falling over the last six months, it is clear that the pressures on inflation are not easing and it may be some time before it moved towards The Bank of England's own inflation target of two per cent. Now is the time for households to use the opportunity to review all their finances and find ways to maximise their income."

Notes to Editors:

Please note: Full MoneySupermarket 'Life in Limbo' Infographic can be downloaded here:  http://www.moneysupermarket.com/money/life-in-limbo-2012-infographic.aspx

Opinium Research carried out an online survey of 2,010 UK adults aged 18+ from 10 to 13 of February 2012

MoneySupermarket.com's customer commitment

  • No other site compares more prices or products
  • We are independent so only find the best deals for you   
  • The price you see is the price you pay - you don't need to go direct and you won't get a better deal doing so   
  • Your details are safe with us and we won't sell them to anybody

MoneySupermarket.com compares (at 29th March 2012)

  • 98 car insurance providers and 81home insurance providers
  • 11 broadband providers and 18 energy providers   
  • 31 unsecured loan and 5 secured loan providers
  • 62 mortgage lenders and 28 credit card providers
  • 67 savings providers and 37 current account providers.
  • Over 1,750,000 mobile phone deals

We promise to be clear and impartial

  • All the products in our full search results tables are displayed in a completely unbiased manner.
  • We don't add fees or commissions on to the prices we compare.
  • There may be times when another site compares more companies than us on a particular product, perhaps because of market changes or technical issues. You'll be able to see this and know we are working hard to fix it.

We promise to be trustworthy

  • We never use your data to make unwanted sales calls or send you spam.
  • We never pass your personal information to third parties unless you give us permission to do so.
  • Even if you choose to receive additional information from us, you can opt out at any time. 
  • We promise to be supportive.
  • You can use our community forum to get information and help from other customers.

If you need further help or support, you can contact our sales advisors or customer services agents.

For further information please contact:

Paul Lawler
PR Manager Financial Services
+44(0)1244-370371
+44(0)787-237-9545
paul.lawler@moneysupermarket.com


blog comments powered by Disqus
Comunicati.net è un servizio offerto da Factotum Srl