It seems that my views about how things are becoming more expensive have been substantiated by hard facts as it has been found that UK households need to find an extra £33 billion to maintain the standard of living enjoyed 12 months ago.
Apparently to maintain the same standard of living as we all enjoyed twelve months ago, a typical household would need to spend an additional £1,258 this year.
It is our old enemy of rising inflation that is causing this. Food and non-alcoholic drinks for example, have increased by around 6.1% over the past 12 months, and we all know how expensive petrol and home energy is becoming.
Its seems, though, that even Mervyn King, the governor of the Bank of England is prepared to accept higher inflation just as it was announced that economic growth slipped into negative territory last quarter.
So higher costs and a slight fall in living standards is to be expected this year. That’s something to look forward to, though it seems that 2012 will be a bit better. Lets hope so!