Inflation data reveals cost of living woes
BY SIMON READ A SHOCK rise in the cost of living is bad news for savers and families.
Inflation, measured by the Consumer Price Index, hit 3.1 per cent in November, its highest level in almost six years. The rise leaves savers’ nest eggs worse off, with returns almost everywhere well below the rate of inflation.
Air fares falling more slowly than before and more expensive computer games helped push up the index, as did the rising prices of other toys and hobbies. At the pumps, motorists also faced higher fuel costs in November, with petrol up 1.8p a litre month on month to 119.1p. Diesel also climbed by 2.3p a litre to 122.8p.
But different figures suggest the cost of groceries is climbing even more quickly. Food inflation hit 3.6 per cent in the three months to December 3, the highest level since 2013, according to research firm Kantar Worldpanel. Fish, pork and butter prices are rising fastest. “The figures are about as welcome as a burst water pipe,” said Kate Smith of Aegon.
“Household finances have been under far more SOME 112 workers at collapsed furniture makers Multiyork lost their jobs yesterday as administrators tried desperately to save the firm.
Duff & Phelps said they were trying to find buyers for all or part of the Norfolkbased business. Meanwhile, the remaining 500 staff face an anxious few weeks with their jobs hanging by a thread.
Administrator Allan Graham said: “During this period of managed wind-down, we will also continue to fulfil customer orders.” BRADFORD is the best city to start a business, followed by Leicester and Coventry, say Barclays.
The bank looked at factors that can help a small business succeed such as infrastructure, broadband speed and labour productivity.
They crowned Bradford in Yorkshire due to the city having the best business rate relief, road network, job vacancies, cost of commercial rent and business survival rate.
Leicester also had a strong business survival rate, while Coventry has high net migration. pressure from the rising cost of living than in any recent years.”
Mel Stride, Financial Secretary to the Treasury, said: “Inflation is expected to fall over the coming year but I recognise families are feeling a squeeze now.” The Bank of England will announce their next decision on interest rates tomorrow. They increased the cost of borrowing to 0.5 per cent last month but are unlikely to announce another rise, despite the higher-than-expected inflation figure.
Meanwhile, Kantar said Aldi regained their crown as Britain’s fastest-growing grocers during the latest quarter with sales up 15.1 per cent, marginally ahead of Lidl who grew sales by 14.5 per cent.
Bank of England Governor Mark Carney will now have to write a letter to Chancellor Philip Hammond explaining how the Bank intend to bring inflation back to its two per cent target.
Carney has to write to the Chancellor if inflation climbs above three per cent or falls below one per cent. 1.14 1.76 2.22 1.72 8.56 29.12 23.76 1.92 4.79 8.25 1.32 43.44 5.13 1.33