CEBR: Average family getting poorer in "real terms"

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CEBR: Average family getting poorer in "real terms"

Fri 15th Aug 2008

The average family is getting poorer as inflation exceeds earning growth, the Centre for Economics and Business Research (CEBR) said today.

Economist Charles Davis noted that average earnings growth is around 3.8 per cent, but inflation outstrips this at 4.4 per cent.

He said: "Clearly, in real terms, the average family is probably getting poorer."

Mr Davis noted that family budgets are under pressure from high costs of food, transport and household bills and said that high inflation has "a real impact" on families' costs of living.

Recent figures from the Office for National Statistics found that the consumer prices index's annual inflation rose to 4.4 per cent in July, from 3.8 per cent in June.

Its largest upward pressure was in food and non-alcoholic beverages.

They rose from an annual rate of 9.5 per cent in June to 12.3 per cent in July.

Food inflation alone has reached a CPI record of 13.7 per cent on the year, up from 10.6 per cent in June.

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