Inflation still driving many to debt

Despite a slight drop in inflation, it is still well above target at 3.1 per cent, meaning many Britons will still need to find debt solutions.

The decrease was caused by the price of transport going down, alongside falls in the price of clothing and footwear. By contrast, inflation for food and non-alcoholic drinks went up.

Ann Robinson, from consumer website uSwitch.com, points out that the new figures “provide no relief to the millions of households struggling to stay afloat.”

She also remarks that whilst luxuries are the first thing to be cut back on, a quarter (24 per cent) of people are also cutting back on food because of growing debt levels.

Recent uSwitch figures show that a fifth (18 per cent) of consumers are using debt to fund their living costs, whilst almost half (48 per cent) use overdrafts to fund their lifestyles.

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