The average British family will have £312 less to spend in 2011 than they did this year, according to new figures.
A report from the Centre for Economics and Business Research (CEBR) suggests that the average family’s disposable income during 2011 will be some £176 during January. If prices remain stable, this means that families will be more than £300 worse off over the course of the year.
The report comes on the heels of an announcement this week that inflation remains on the rise. Consumer inflation rose to 3.3 per cent in November, while the Retail Prices Index increased to 4.7 per cent.
Rising food and clothing prices contributed particularly heavily to the increases. It is thought that the cost of products in this sector will continue to rise over the course of the year.
The CEBR report also suggests that the average UK family will have £832 more in income in 2011 than they did in 2010, thanks to small pay increases.
But this increase is more than wiped out by rising prices on the High Street. Additionally, thousands of workers across the country endured a second or third consecutive year of pay freezes in 2010.
The Bank of England’s rate-setting Monetary Policy Committee is now under increased pressure to push through a rate rise sooner rather than later.
