Rising fuel costs are expected to push up inflation over the coming year, putting further pressure on families already feeling the pinch of higher prices.

The latest Consumer Barometer from Lloyds TSB Corporate Markets shows that inflation expectations for the next 12 months are approaching four per cent.

Some 89 per cent of respondents to the survey said they thought prices would be higher than they are at present in a year's time, with the average estimate of where the inflation rate is likely to be standing at 3.8 per cent, up from 3.6 per cent in April.

This increase has been driven by large rises in fuel prices, with motorists facing record petrol and diesel costs and homeowners being met with soaring energy bills.

However Trevor Williams, chief economist at Lloyds TSB Corporate Markets, points out that once fuel prices start to fall next year, as they are predicted to, inflationary pressures will ease.

Until this happens consumers struggling with rising prices could find a secured loan helpful to tide them over.

Sean Gardner, chief executive of MoneyExpert.com, said secured loans have become far more attractive to homeowners because of the competitive rates of interest on offer.ADNFCR-1287-ID-18616919-ADNFCR

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