Price rises expected by public

02/04/2009

Prices and interest rates are predicted to rise, putting further pressure on people's budgets, a survey from Lloyds TSB Corporate Markets shows.

Just over half (51 per cent) of the members of the public questioned by the financial firm in March said that goods and services would cost more in a year's time.

In February, this total was 48 per cent.

The amount of people expecting a rise in interest rates - which makes loan and card debt harder to repay - also shot up over the month, going from 27 to 45 per cent.

Trevor Williams, chief economist at Lloyds TSB Corporate Markets, said: "It is not surprising that consumers still feel prices will rise.

"For many the cost of living, such as food and rail fares, remains stubbornly high; particularly as pay rises are minimal this year."

Latest inflation figures from the government show an increase in annual price rises from three to 3.2 per cent from January to February 2009.

Tags; Income Worries and Debt, Young Family Finances, Retirement Money Problems, Credit Card Lifestyle,

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