Telegraph: real cost of living down 4.3%

The Telegraph has claimed that the `real cost of living` for the average British citizen has fallen by 4.3% in the past year - far from the official inflation rate of +3%.

In its latest Real Cost of Living Index (RCLI) release, The Telegraph claimed that despite sharp price rises in many food products, falling mortgage rates and transport costs have brought the overall cost of living down, compared with this time last year.

However, the RCLI does not specifically account for people who do not own a car or pay a variable-rate mortgage - and who would have probably experienced a rise in living costs, based on The Telegraph`s figures.

A spokesperson for debt management company Gregory Pennington commented: "A major difference between the RCLI and the official CPI method of measuring inflation is that the RCLI includes mortgage interest payments, while the CPI does not.

"A large number of homeowners have benefited greatly from the recent base rate cuts, and may well be in a stronger position than this time last year. But sharp food price rises mean that others could be at a higher risk of debt as the recession continues."

---

Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.