Consumers frozen out as pay fails to keep up with inflation

With concerns growing over family finances uSwitch.com warns that today's inflation figures coupled with tomorrow's pay figures could prove a deadly double blow for hard-up families.

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "Consumers are facing a perfect storm that could see household finances knocked for six this year. Today's news that the CPI has hit 4% is expected to be followed tomorrow by news that wages have increased by just 2%. When salaries fail to keep up with inflation it spells misery for consumers. These figures could be a cruel and costly combination for households, many of whom are already struggling to stay afloat in these stormy economic times.

"For some, building up debt is the only way to bridge the gap between rising costs and lagging salaries. However, what may start as a short-term solution can end with consumers being caught in a downward spiral of debt. Rather than continuing to plug the gap by borrowing, consumers should look at saving money wherever possible. Stripping down living costs and household bills to the bare minimum can be the lifeline people need to stay afloat."