Tuesday 15th of February 2011
The knock-on effect of rising inflation could result in some UK adults already deep in the red considering individual voluntary arrangement questions to help ease their financial woes.
It has emerged the UK Consumer Prices Index annual inflation rate increased to four per cent in January following the VAT rise.
The amount jumped from the 3.7 per cent recorded in December and now stands at its highest since November 2008.
Moreover, the retail prices index inflation - which takes into account mortgage interest payments - leapt from 4.8 per cent to 5.1 per cent.
The British Chamber of Commerce estimated inflation will keep on rising until it reaches 4.5 per cent before it finally stabilises and warned this year will probably see interest rates grow too.
Research recently compiled by Confused.com found 57 per cent of Britons believe they are unable to put any money to one side as a direct result of the cost of day-to-day living being so high.
By Chris King
