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Energy price hikes to blame for increased inflation
Friday 10 October, 2008
By becca.talbot@consumerchoices.co.uk
Higher gas and electricity bills have pushed inflation over the 5% mark for the first time in 16 years, official figures revealed today.
The Bank of England’s official inflation benchmark, the Consumer Prices Index (CPI), hit a record high of 5.2% in September, following a summer of energy price hikes.
The CPI is the Consumer Price Index, a measurement of prices for a range of consumer products, calculated by the Office of National Statistics to provide a guide to rises in inflation.
The CPI reached 5.2% last month – the highest CPI reading since 1997, and a 16-year historical inflation peak.
Following the price hikes for gas and electricity, and an earlier round of increases in January, electricity prices have increased by as much as 30%, and gas costs are up almost 50% on last year, meaning the new cost of has raised the CPI.
The annual rate of inflation for energy and other household bills has reached 15%, the highest figure since 1989; while price rises for clothing, footwear, toys and games have also added to inflation pressures.
Chris Eagle, Financial Director of EnergyChoices.co.uk said: “The increase in energy prices have had an effect on everyone, as the new CPI figures show, and with the number of those living in fuel poverty expected to rise, it’s important that you make sure you’re not paying more for your energy than you need to. Use our online price comparison tool to help you find a better tariff more suited to your needs.”
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