With reported discrepancies between the Consumer Prices Index (CPI) and the real rate of inflation, financial advisor Fool is urging customers to keep track of their spending to avoid falling into the red.

The online group suggests that with personal income lagging behind rates of inflation, many people could find that they are unable to put money aside or meet household costs such as utility and food bills or secured loans repayments.

Following an announcement by the Office for National Statistics stating that the CPI has risen half a point to three per cent since March, Fool asserts that its own inflation index offers a gloomier picture.

The group puts the real annual rate of inflation at eight per cent.

David Kuo, head of Personal Finance at Fool.co.uk, says: "The erosion of the amount of money we save each year strongly suggests the true rate of inflation is gradually crippling household budgets."

The company has also recently advised consumers to brace themselves for a round of job cuts in a worsening financial environment.ADNFCR-1287-ID-18592713-ADNFCR

Request a Callback

Fill in your details and we'll call you back