The REAL cost of inflation

The trick of official underestimation of inflation is wearing thin. Folks are catching on. See below.

The REAL cost of inflation: The Mail's Cost of Living Index reveals food prices rising at SIX times official figure

By SEAN POULTER
Last updated at 13:00pm on 18th April 2008

The true, devastating scale of rising prices is revealed today - by the new Daily Mail Cost of Living Index.

It shows that families are having to find more than £100 a month extra this year to cope with increases in the cost of food, heat, light and transport.

According to the Consumer Price Index, inflation is running at only 2.5 per cent.

Yet the Mail's index finds that food costs alone are rising at 15.5 per cent a year - more than six times the official rate.

And there are double-digit increases in other "must-pay" essentials such as petrol, gas and electricity.

Many families need to find more than £1,200 extra a year just to stand still.

Once higher mortgage costs are added, millions are having to pay out at least another £2,000 a year to keep their heads above water.

The Bank of England's chief economist Charlie Bean admitted last night that higher food and energy costs are likely to push the Consumer Price Index over 3 per cent this year.

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