Poorest Households Suffer Highest Inflation

Britain's poorest households are suffering from higher rates of inflation than official statistics suggest, according to new Which? research. These findings originate from the Which? Lived Inflation Index, which is based on the government’s Consumer Price Index (CPI), but takes into account differences in spending patterns between households. The index indicates the poorest households are experiencing higher levels of inflation than the richest households. In the year to July 2014, prices rose 1.8% for the poorest households, compared to 1.5% for the richest households. Those differences mount up over the years. Looking at inflation since 2008, the impact on households suffering high inflation is equivalent to additional costs of £450 a year, compared to households experiencing the lowest inflation rates. Read more on the Which? website.