Standard of Living Expected to Plunge
The nation needs an extra £39 billion to enjoy the same standard of living they experienced a year ago, new figures show.
The latest Consumer Price Index was shown to have risen from January to 4.4%, a 0.3% rise. The typical average household expenditure is estimated at £35,363 per year following this rise.
MGM Advantage estimated UK households need an extra £38.869 billion overall to maintain their previous standard of living. This accounts to an additional £629.03 per person a year to maintain previous lifestyles.
“The price of goods is rising at an alarming rate and coupled with the fact that people are living much longer, means many people in retirement are finding it more difficult to survive financially,” commented Aston Goodey, MGM Advantage sales and marketing director.
This is an extra £1,496 a year UK households will have to account for to live how they did a year ago.
Inflation on Budgets
The Office for National Statistics revealed the CPI is 0.3% higher than it was a year ago with clothing and footwear adding a big upward jump on the cost of living. This saw the largest rise in a January to February movement to stand at 3.6%.
Transport prices are another pressure on the rate of inflation rising by 0.8% from January to February 2011. Fuels and lubricants posed the greatest pressure as pump prices rose by 1.4%.
Prepaid cards are a good means to prevent overspending each month, which could be a problem if you are used to your money stretching further.
A prepaid card does not have an overdraft facility so the user can only spend what they have loaded onto the card, and not more. This also means the user is required to manage their money better to prevent being unable to pay for something when they require it.