Many people are facing financial difficulties because of rising inflation, according to the Alliance Trust.
[UKPRwire, Fri Dec 28 2007] Although the Bank of England has reported that consumer price inflation stabilised at 2.1 per cent in November, the Alliance Trust says that the true figure is higher.
It reports that people aged over 75 and under 30 have been the worst hit, with inflation for these age groups said to have increased to 2.6 per cent.
Rising food, rent and fuel prices are said to be to blame and may be leading many people into financial difficulties in 2008.
"Although the official headline rate of inflation remained unchanged this month, inflationary pressures are still strong for many basic goods," said Shona Dobbie, head of the Alliance Trust Research Centre.
"The high oil price has pushed fuel prices to a 26-month high, while price inflation for milk, cheese and eggs, and bread and cereals, are both at their highest levels on record.
"Rising food prices have the biggest impact on the inflation rate facing the over 75s since this age group spends a much higher proportion of their household budgets on basic items such as these," she continued.
Fast property sale expert Julian King adds, "Homeowners are finding things difficult, as more people come out of their fixed rate agreements next year, despite the recent quarter point reduction in the base rate, they will find keeping up repayments very difficult.
"We advise those predicting a difficult financial time to consider a quick house sale to avoid repossession".
Mr King is a director of National Homebuyers, the UK's leading fast property purchase firm, guaranteeing to make an offer on any property in the UK, regardless of its condition or location for vendors who need a quick sale. The company also offers a Sell and Rent Back mortgage rescue scheme for homeowners who want to release equity in their homes.
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