The High Cost Of UK Living

JUST what is going on in the UK? With another interest rate hike now expected from the Bank of England, we humble Britons are getting hit from all sides. (Pic: Beau Bo D’Or)

With massive mortgages to pay and mountains of debt to contend with, things aren’t looking too good for the common or garden British tax-payer, and now the Organisation for Economic Co-operation and Development tells us that food prices and energy bills are rising faster here than almost anywhere else in the world.

The OECD figures show that UK shoppers are paying 4.9 per cent more for their weekly groceries compared with a year ago, a substantial increase that is almost twice the EU average and over five times more than in France.

The British are also paying 4.4 per cent more for their electricity and gas and with yet another interest rate increase imminent, things will only get worse.

The Nationwide’s chief economist, Fionnuala Earley, says: “The fall in confidence in June reflects some weakening sentiment about the economy and jobs, both now and in the future. Higher interest rates are likely to be a major factor behind this as consumers recognise their impact on the wider economy as well as on their own pockets.”

Of the 30 industrialised nations that form the OECD, only Hungary, Mexico and Turkey are suffering from higher levels of inflation that the UK.

Thanks for that, Gordie.

Anorak

Posted: 4th, July 2007 | In: Money Comment (1) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink