Inflation rates have risen to their highest levels in nearly 10 years. Price rises over the past 12 months hit 4.2 per cent in October — up from 3.1 per cent in September — and economists have warned inflation could soon hit 5 per cent.
It’s important to understand what this means for your wallet. Money Mail has analysed vast amounts of data from the Office for National Statistics to find out where you may be feeling the pinch.
Rebecca O’Connor, head of pensions and savings at Interactive Investor, says: ‘Prices are rising generally, but look closely and you’ll see that the increases from product to product vary significantly.
Price rises over the past 12 months hit 4.2 per cent in October — up from 3.1 per cent in September — and economists have warned inflation could soon hit 5 per cent
‘This means it’s more important than ever to keep a close eye on your bills and compare what you paid last month or even last week for regular items to see where the biggest hits are.’
Increase of 1.2% in food and beverage
The price of food has risen by 1.3%, and the cost for non-alcoholic beverages, like juice or coffee, by 0.7%.
However, supermarket chiefs warned that prices may rise as high as 5% before the year ends due to supply problems in the sector.
Your choices at the supermarket can help reduce inflation’s impact. The price of whole milk has soared 4.9 per cent, while low-fat milk is up just 2.1 per cent — so could be a good swap.
The food fight continues: However, supermarket chiefs warn that prices may rise as high as 5% by the end of this year due to supply problems in the sector
Butter is now up 6.4% while margarine rose 15.6%. Bread now costs 1.6 per cent more, but flour is down 14 per cent after surging during lockdown.
Chocolate is now down 1.5%, while ice cream is increasing 5.5%. Yoghurt is 9.7 percent more expensive, while cheese costs only 0.3 percent.
For pizza and quiche, prices are 27% and 12% respectively. However, rice has risen by 3%
Similar to the above, lamb and goat prices have risen 8.5% while poultry prices are only 1% higher. The price of nuts and dried fruit is down by 4.8% while fresh fruits are on the rise by 1.9 percent.
Tea is a better choice than coffee, which can save you up to 3.3%
Tobacco and alcohol up 1.8%
You will be more affected if you drink or smoke. The price of wine has risen by 2.7 per cent, while for beer it’s 0.5 per cent.
Port wine, a fortified wine made from port is now available at 5.4 percent more. However spirits are down 0.2%.
Prices for cigarettes have increased 6.9%, while those of cigars are now at 2.9%.
Tobacco prices have risen by 2.4%, with cigarettes rising 6.9% and cigars at 2.9%.
Clothes: 0.4% down
A new wardrobe can be purchased for slightly less than it cost a year ago. Though, while men’s clothing is down 0.3 per cent in price, women are paying 1.4 per cent less. And men’s shoes are 2.9 per cent more expensive, yet women’s shoes are 1.4 per cent less so.
Children’s clothing is 1.9 per cent more costly, so too are all clothing accessories, which are now priced 9.6 per cent higher.
You will pay 8.6 percent more to repair or hire clothing. Cleaning costs are also higher at 3.1%
The Household Bills are up 6.8%
Spiralling inflation is due to the skyrocketing energy price. Gas has now surged 28.1 per cent in price, while electricity is 18.8 per cent dearer. Water prices are 2.5% higher.
However, there are very few things bill-payers could do to reduce their utility bills. Providers are not offering discounts to customers who change suppliers due to rising energy costs.
Also, the cost of materials used in home renovations or repairs have risen by 13.63%.
Furniture for the home up 5.7%
Now is not a cheap time to be sprucing up your home’s interior. The price of furniture, furnishings and carpets has shot up by more than 10 per cent in all.
The cost of curtains and fabric has increased by 2.1%, with carpets and rugs at 5.5% and bed linen at 5.2%.
Also, household appliances have become more costly than they were before. A fridgefreezer is 12 per cent dearer, washing machine prices are up 7.2 per cent and cookers cost 6 pc more.
Cutlery and silverware are the only household items that saw a decline in their prices according to ONS data. They have fallen by 1.5 percent.
Healthcare: While syringes and other medical equipment seem to be slightly cheaper, health care costs have risen as dental services are more costly (3.8%) and hospital prices 6.7% higher.
Increase of 1.2% in health costs
Pills and medical equipment are now slightly less expensive — with prices falling by 0.6 per cent. Price of contact lenses, eyeglasses and other medical equipment has also fallen by 0.5%.
However, health costs have risen as services such as dentistry are now 3.8% more costly and hospital fees including private surgeries are 6.7% higher.
Transport up 9.9%
Rising transport costs, along with energy prices, are responsible for much of the UK’s inflation surge. The cost of driving has increased over the last year.
Second-hand car prices are now 22.8 per cent higher, owing to a shortage of new motors. Petrol costs 22.5 per cent more, whereas diesel is 20.5 per cent pricier. Motorbikes and bikes cost 15.7 percent more than new motorbikes.
But it’s not just motor vehicles that have been hit by inflation. Flying costs 16.2 percent more, while train tickets have increased by 3.2 percentage.
Down: Women’s shoes are 1.4 % less expensive than last year. Children’s clothing is 1.9% more costly, so too are all clothing accessories which are now priced 9.6% higher
Communications up 1.4%
This Christmas, the cost to send cards to family and friends will go up because postal services prices are at an all-time high of 5.6%.
It’s good to know that landline and mobile phones have dropped by 1.9%, while prices for mobile phones have declined by 4.2%.
However, internet access is 1.5 times more expensive than phone plans and broadband services are 2.2% less.
Enjoying leisure and recreation has increased by 2.5%
It is now 3.8% more costly to buy toys and games for Christmas.
The prices for garden products and sport equipment are both 9.2 percent higher, 4.7% more expensive, and 4% more for pet vet services. Additionally, camping equipment costs more than 10%.
Yet books are 1.1 per cent less expensive. Even though tickets to the theatre, cinema and concerts are 9.5% more expensive, you will still be able to visit a museum or zoo for 4.9% less than last year.
Wardrobe: Men’s clothing is down 0.3 % in price but men’s shoes are 2.9 % more expensive
Hotel and restaurant prices up 6.3%
Now, eating out costs five percent more than what it cost last year. And you can’t escape the increase by ordering fast food and takeaways, as these will also cost you 3.4 per cent more.
The increase in food prices can partly be attributed to the loss of VAT relief that was granted to cafes and restaurants during the pandemic.
And you’ll have to spend a little more time saving up before you book any holidays, as hotel stays will set you back 14.7 per cent more, and campsite costs are 16.9 per cent higher.
b.wilkinson@dailymail.co.uk