Friday, 1 November 2013

Another reason to feel poorer

The Office National Statistics analysis shows the amount of our income accounted for by “essentials” – housing, water, sewerage, energy bills and fuel – has risen over a decade from 19.9 per cent to 27.3 per cent. Once food is taken into account, the numbers are more striking still. Cumulative inflation as measured by the Consumer Prices Index – the yardstick used by the Bank of England – has been roughly 30 per cent. Yet the Tullett Prebon Essentials Index – which takes in most of the necessities of modern living – has gone up by more than 60 per cent. Consumers’ discretionary spending has been eroded even more severely than that fall in disposable income suggests

Keep in mind these stats are averages - for very many people as we know - housing costs and other essentials can be way above 27%.

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