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Households in cost of living crisis

Wednesday November 13th 2013

Inflation means households will need to spend over £500 more a year to maintain their standard of living compared to a year ago.

According to data published by MGM Advantage, UK households will collectively need to find an extra £14.4 billion a year collectively, equating to £553 per household.

Inflation was at 2.2% in October, down 0.5% on the previous month, but despite this many families are having to cut back on spending to make ends meet.

Aston Goodey, from MGM Advantage, said the dip in inflation may offer temporary respite.

He said "Although petrol and diesel prices have driven down inflation, there is a fear the recent energy price hikes will fuel further inflation

"Many people are struggling to makes ends meet, with one in two cutting back on spending in any way they can over the last year to cover the cost of day-to-day living. This clearly shows we are in the middle of a cost of living crisis."

Mr Goodey said that inflation affects retirees differently to other people, as over 65s generally spend more of their income on household bills.

Copyright Press Association 2013

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