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Screensize: 640 x 480 800 x 600 1024 x 768 1280 x 1024 UserName: Password: Format Mode: Basic  Help  Prompt  Format: Font Andale Mono Arial Arial Black Book Antiqua Century Gothic Comic Sans MS Courier New Georgia Impact Lucida Console Script MT Bold Stencil Tahoma Times New Roman Trebuchet MS Verdana   Size 1 2 3 4 5 6   Color Black Red Yellow Pink Green Orange Purple Blue Beige Brown Teal Navy Maroon LimeGreen Message: * HTML is OFF * Forum Code is ON Smilies [quote][i]Originally posted by BankruptcyNews[/i] [br]Middle Britain hit harder by rising inflation The real inflation rate in Middle Britain is 16 per cent higher than the official figure, researchers claim. The very poorest families are even harder hit, though the impact for them is partly cushioned by tax credits and welfare benefits. By contrast, the best paid in society experience inflation either at or close to the official level, according to analysts at Scottish investment trust Alliance. Last week, the Consumer Prices Index for May gave an annual inflation rate of 2.5 per cent. But Alliance said it had used Government figures for household expenditure to work out that those in the lower to middle earnings band - averaging £17,000 a year - were suffering a 2.9 per cent rate. That 0.4-point difference amounts to a 16% increase on the official rate and arises because these people tend to spend more on the sort of items that have risen in price during the past year - such as housing, food and transport - and less on those that have fallen, such as clothing and consumer electronics. Those in the lowest income band, earning less than £7,000, suffer an even higher inflation rate than the lower to middle earners. In the year to May, according to Alliance, their real inflation rate was 3.2 per cent, 28 per cent up on the official rate. Those in the middle to upper earnings bracket - with average incomes of £35,000 a year - experienced inflation at the official 2.5 per cent rate in the year to May, said Alliance, while people in the highest group, earning more than £64,000, saw a 2.7 per cent rate. 'Low earners face continuing difficulties,' said Shona Dobbie, head of research at Alliance. 'They are forced to allocate their budgets to the goods and services that have experienced the highest price changes, with little disposable income left to spend on discretionary goods - such as clothing, footwear and audio visual products - where prices continue to fall.' Source: thisismoney.co.uk See my Blogs: http://bankruptcynews.blogs.bankruptcyhelp.org.uk [/quote]   Check here to include your profile signature.