Tuesday, 12 April 2011

How does inflation hurt us?

Inflation has fallen to 4%, but it's still high and eating up our ability to afford what we need.

This is what drivers at a petrol station in Wednesbury in the West Midlands had to say about it:

"You ain't got the money to spend on anything else because you got to keep mobile to keep your job."

"It's costing me twice as much just to get to work, but you don't have increases in your wages or anything, so it's really hitting me in the pocket."

"I haven't really got that much spare cash to do anything else. Holidays go out the window and it's really difficult."

And here's a thought from a pensioner, surviving on a fixed income, who's been hit by the rising cost of fuel, heating and food:

"Even though I have a good police pension, and my wife has a small pension, it's being eaten into by the rising costs. So we're having to go to savings and of course you don't get any interest on the savings. So that's not building, it's being eaten away."

No wonder the British Retail Consortium has just reported the biggest monthly fall in sales since it started collecting the stats.

Shoppers are reluctant to borrow. They're paying back debts if they can.

So unless they dip further into savings, High Streets could be in for a difficult summer.

No comments:

Post a Comment