Inflation 'still a factor for families' despite drop

People who use a credit card to help them stick to a strict budget plan and cope with the rising cost of living may welcome the news inflation has dropped.

The latest data from the Office for National Statistics indicates consumer price index inflation stood at 4.2 per cent in December, down from 4.8 per cent the previous month.

A fall was also recorded in the retail price index, which dropped from 5.2 per cent to 4.8 per cent in the same timeframe.

Unison called on the government to take advantage of this development and ease the financial burden on families' household budgets.

Conditions could remain tough for many people, as public sector workers face pay freezes, which may place extra pressure on those who are already under strain in terms of their outgoings. 

It was noted downward pressures came from reductions in the cost of retail goods such as clothing and alcohol.

Posted by Martin Peacock