A trade union analysis has found that the cost of living has been going up faster for poorer than for richer households.
The Trades Union Congress says consumer price index inflation for the poorest 10 per cent of households in February 2012 was 4.1 per cent – compared with 3.6 per cent for middle-income households, and 3.3 per cent for the richest 10 per cent. The poorest households spend a larger proportion of their income on food and utility bills – the prices of which have been rising faster than headline inflation. For example, they spend 17 per cent of their income on food and non-alcoholic beverages, the prices of which rose by 3.7 per cent in February 2012. By contrast, the richest households spend just 10 per cent of their income on food and are therefore less exposed to these rising costs.
Source: Press release 10 May 2012, Trades Union Congress