Household Spending Habits

Consumer prices index (CPI) annual inflation rose to 4.4 per cent in July, up from 3.8 per cent in June, according to the Office for National Statistics (ONS).

The start of a new university year is now fast approaching. However in the current economic climate, with rising energy costs and food prices, this year many students will be thinking about how to make their money stretch that little bit further.

Latest reports may indicate that the High Street has been hit by the credit crunch, but the nation's love of bargain hunting shows no signs of abating, according to findings by independent price comparison and switching service, uSwitch.com.

Commenting on the Payments Council Report ‘UK Payments Market 2008', Mark Hodson, Marketing Director at PayPal UK said: "The increase in PayPal's market share of consumer internet payments from 16% in 2006 to 21% in 2007 as highlighted by the report is exciting news.

A new generation of fun-loving and fancy-free over 50s - dubbed Generation Flex - is emerging, flying in the face of the credit crunch, according to new research by Lloyds TSB Insurance.

The number of students in part-time employment during the academic terms has risen sharply following the past two years of falling numbers of student workers, according to the NatWest Student Living Index.

Britain's green and pleasant villages - where many more homes rely on oil for their heating - are also suffering the fastest rises in food and fuel prices.

Michelle Slade, analyst at Moneyfacts.co.uk, comments: "One year on from the start of the credit crunch and we are all feeling the pinch. Food and fuel bills have sky rocketed and mortgage rates have been at the some of the highest levels ever seen.

The Nationwide Consumer Confidence Index fell by 11 points to 51 in July. Overall consumer confidence is 18% lower than this time last month and 46% lower than a year ago.

Fears about the health of the UK job market intensified further in July, as consumer confidence in employment prospects and the security of their jobs hit new lows according to the latest Consumer Barometer from Lloyds TSB Corporate Markets.