Consumers struggling with debt may find their purse strings tighten further as inflation rises.
The Bank of England’s last inflation report predicted a short-term surge in the consumer prices index and signs of this have emerged with November’s inflation data.
Figures from the Office for National Statistics show that the consumer prices index (CPI) rate rose from 1.5 per cent to 1.9 per cent last month.
The main cause was the price of petrol and lubricant for motorists, as the steep falls in the prices of these last autumn dropped out of the annual equation.
Rising prices could mean those with debt management problems could benefit from changing to financial products that could charge them less interest than they currently pay.
Money exchange firm Travelex responded to the figures by predicting that the CPI level will soon reach three per cent, noting that factors such as the restoration of the 17.5 per cent VAT rate in the new year and economic recovery could contribute to this trend.