Many people struggle with the rise in prices
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Pressure on the purse strings has caused household finances to come under strain, according to research
Markit and YouGov surveyed 2,000 households and found that people are struggling with the risk of losing their jobs and the higher cost of living.
The survey found that 30 per cent of households felt that their finances had worsened in recent months, compared to just 6 per cent who said they had improved.
A rise in product and service prices appeared to be at the root of the strain, with 69 per cent of respondents noticing an increase in those areas.
Tim Moore, an economist at Markit, said, ‘Stronger growth in the UK economy has done little to put a floor under the downturn in household finances.’
The survey also found that many people thought that the future of their finances looked bleak, with just a quarter of participants agreeing that their problems would improve.
However, a spokesman for the Bank of England has said that they are not overly concerned about the recent price increase as it is just a result of temporary pressures.
By Lauren King
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