Abacus Daily Debt News

Debt fears heightened by rising living costs?

The rising costs of everyday living could be adding to debt concerns experienced by many people in Britain, it has been suggested.

Editor of CashQuestions.com Annie Shaw noted people will still find prices for goods remain expensive, despite a slight decline in inflation.

The industry expert claimed: "We are seeing huge increases in the price of some foods and other things, like oil prices, have been very volatile."

She explained the disparity between the Bank of England base rate and the Consumer Price Index would also mean almost everyone losing value in their savings.

It would be impossible for higher rate taxpayers to beat inflation on the money they have placed aside, while it may also be difficult for lower rate taxpayers as well, she added.

The Office for National Statistics recently revealed the Consumer Price Index annual inflation currently stands at 3.1 per cent, which was down from the 3.2 per cent registered in June.

By James Francis