Socialist Worker

The soaring cost of living that New Labour tries to deny

Issue No. 2098

The latest figures show the cost of food in Britain is rising at 15.5 percent a year.

Families will have to find more than £100 a month extra this year to cope with increases in the cost of food, heat, light and transport.

According to the government-preferred measure of inflation, the Consumer Price Index, inflation is running at only 2.5 percent.

But the reality is that many families need to find more than £1,200 extra a year just to stand still.

Once higher mortgage costs are added, millions are having to pay out at least another £2,000 a year to keep their heads above water.

A household spending £100 a week on food in 2007 will now have to find another £66 a month or £800 a year.

Unleaded petrol is up by 16.5 percent while diesel has soared by 23.3 percent in a year – putting up the annual cost of motoring by an average of more than £200.

Gas and electricity are up by more than 12 percent, adding an average of £100 a year to household bills.

A pack of butter is up by 36p to 94p – or 62 percent. A dozen free-range eggs are up 70p to £2.45 – or 40 percent and a pack of frozen peas from 46p to £1.52 – or 43 percent.

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