Poorest households face biggest squeeze from rising UK inflation
The UK’s poorest households have faced the brunt of the recent rise in inflation, according to official figures.
New analysis from the Office for National Statistics (ONS) found that the country’s lowest-earning households saw their cost of living rise by 4.1% between April and June.
This compares with a 3.8% rise in the living costs of the highest-earning households.
It indicates a reversal of recent trends, with the ONS highlighting that it is the first time that low-income households have experienced a higher annual rate of inflation since June 2023.
The quarterly Household Costs Indices data also showed that renters have faced sharper increases in their living costs than homeowners.
Private renters witnessed an annual inflation rate of 4.5% in June, as rent costs continue to jump.
Meanwhile, the statistics body said households which completely own their homes witnessed an inflation rate of around 3.4%, while this was 4% for those with mortgages.
Poorer households have witnessed higher inflation rates due to their particular exposure to rising energy, food and rent costs.
The ONS said overall UK household costs rose by 3.9% in the year to June, surging from 2.7% in the year to March.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “No matter your age, what you earned, or whether you owned your own home, you’ll have felt the pinch of inflation in the year to June, as prices were rising faster across the board.
“However, renters and those on lower incomes were hit the hardest, and they are the groups who are least able to weather the storm financially.
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Awful April shoulders much of the responsibility for the pain, with rises in the cost of essentials from council tax to energy bills.
“Lower earners spend a larger portion of their income on these kinds of costs, so when they rise, they take more of a toll.”
