Families at risk of debt from toxic high inflation

Wed, 13 Jul 2011

Many British families are at risk of debt and even repossession due to the "toxic mix" of economic factors putting pressure on their finances .

According to the Trades Union Congress (TUC), recent Office for National Statistics data underlines how people are struggling.

The statistics show that RPI inflation fell to five per cent and CPI fell to 4.2 per cent in June, but TUC general secretary Brendan Barber explained that this will be of little comfort to those facing rising food and transport bills.

He said: "The cost of living is still rising twice as fast as wages, so our income squeeze is getting tighter every month and will continue for some time.

"With a weak labour market, growth at a standstill, and both business and consumer confidence down, inflation is the only measure that's bounced back since the recession, creating a toxic mix for families' living standards."

Meanwhile, Moneysupermarket.com also noted that UK consumers are continuing to feel the pinch, with one in four of its customers now unable to save.
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