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Cost of living is soaring

This article is over 16 years, 2 months old
Officially Britain’s rate of inflation rose to 3 percent this week. Yet the real rate of inflation for ordinary people is rising twice as fast as the official figures show.
Issue 2101

Officially Britain’s rate of inflation rose to 3 percent this week. Yet the real rate of inflation for ordinary people is rising twice as fast as the official figures show.

Consumer Price Index (CPI) rate of inflation – the government’s preferred measure – was up from 2.5 percent in March to 3 percent in April.

The more accurate Retail Price Index (RPI) rate of inflation – which includes some housing costs such as mortgage payments – rose to 4.2 percent in April, up from 3.8 percent in March.

The main cause of the rise was increases in the average houshold bill. Food – particularly meat, fruit, bread, cereals and fish – are all rising fast.

A family which spent £100 a week on food last year now has to find another £19.10 a week, or £993, a year for the same products. Once bills for petrol, mortgages, power and council tax are added, the extra cost is more like £2,200.

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