Rate of Inflation Causes Concern for British Savers
British Savers - Money SavingA worrying 93% of people are concerned about the rate of inflation on their finances, new research has shown.
The research, carried out by the Post Office, revealed that only 1 in 5 was able to correctly identify what the current rate of inflation was.
A further 19% of people admitted they were unsure how the rate of inflation impacted on their existed savings.
The vast majority still claimed they were worried about the impact of inflation on their savings.
A further 23% said they do not know if the interest rate on their savings account is higher or lower than the rate of inflation.
The correct inflation rate at the moment is 5.2%. Intriguingly, men seem to believe they have a better grasp on inflation than women.
59% of men questioned said they have a good understanding of the effects of inflation compared to 34% of women.
4% of those aged between 18-24 years old had not even heard of the financial term.
Further research carried out by Legal and General found that 1.3 million UK households are financially worse off now in comparison to just 9 months ago.
The rising cost of living appears to be mainly to blame with British gas recently announcing that they are increasing gas prices further by 18% and their electricity prices by 16%.
This is likely to increase annual household bills by up to £200, an added expense that many will simply not be able to cope with.
An estimated 6.3 million UK households are currently living in fuel poverty due to the rising cost of energy bills. This is a trend that shows little sign of changing soon, a particularly worrying pattern for many within the UK.
If you are worried about the rate of inflation affecting your savings, a prepaid credit card could help you. The card prevents overspending as there is no overdraft.