Inflation hits 11 year high
Inflation has hit an 11 year high of 3.3 per cent, well above the bank of Englands target of 2 per cent.
All the recent reports I’ve read seem to be pointing towards further price increases and a real threat of recession in 2009.
The problem for family finances is that living costs have increased over the last 12 months while salaries are ‘expected’ to increase by just half as much. The other problem here is why would a business give pay rises to staff in the current economic climate?? I just can’t see it happening…
Unfortunately for consumers, that leaves us trying to fund the shortfall in rising food bills, fuel prices and utility bills. I’m just glad I’m not remortgaging in the next 3 years otherwise I’d be faced with possible mortgage exit fees and mortgage booking fees to pay in order to get onto a competitive mortgage rate - that’s if I could find one.
You should think very carefully about clearing any debts you may have and then tackle your household budget to ensure you’re not overspending and cut back wherever you can. I think these are the main essentials that everyone should undertake and most people should be able to get by until things ease.
Unfortunately the main form of defence against high inflation is high interest rates, so it won’t suprise me if we see higher interest rates to come.
In the meantime get using the internet for what it’s best at - comparing and buying! And I don’t mean clothes and gadgets! I mean comparing financial products and comparing home insurance, comparing car insurance to find the best deals and get the cheapest rates you can. This is the best way to combat increasing inflation and it’s something you can do fairly easily using the internet.
>>Click here to compare car insurance
>>Click here to compare home insurance and find the best deals
>>Click here to compare mortgages, find the best remortgage deals today