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Bank charges: Cost of living still stretched

Consumers continue to be squeezed as inflation has held steady in March.

The Office for National Statistics said the consumer price index has stayed at 2.8 per cent again, which is the highest level seen since May last year.

Only the price of fuel and food was eased.

As wages are not rising fast enough, with an average increase being measured at little over one per cent, it is likely that consumers will still have to look for ways to spend less.

The target for inflation is actually two per cent but it has remained above this since 2009 and even rose from 2.7 per cent earlier this year.

Before this, the Bank of England admitted that inflation will remain above its target for longer than it had initially hoped.

Some economists have said that they think the inflation rate will breach three per cent over the next few months.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.ADNFCR-2776-ID-801572127-ADNFCR

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