Students 'hit hard by soaring inflation'
Students 'hit hard by soaring inflation'
Wednesday 20th August 2008
According to the Consumer Price Index, inflation for most Britons is currently running at 4.4 per cent.
However, the Open University has calculated that students are being hit much harder, and are facing a rate of 6.6 per cent - a development it attributes to the fact that that they spend a higher proportion of their money on goods that have risen the fastest.
These include tobacco, housing, travel, clothing and food and drink, which the Bank of England has calculated is rising at 12.8 per cent annually.
Alan Shipman, an economist and creator of the index, said: "Inflation hits different socio-economic groups in varying ways.
"In my research, students are certainly experiencing a higher inflationary rate because the cost of what they need to buy is among the highest categories of price rises."
Concerns that students could develop a debt problem this year were stoked last week in the wake of research conducted by Push.co.uk which found that a student is currently accumulating loan and credit card debt of around £4,500 for each year they study.
This is up ten per cent from last year.
www.debt1.co.uk - The official website of Byrom & Keeley – A UK based debt management company
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