December 27, 2011
The price of basic purchases, such as food and fuel, soared by 43 per cent over the decade from 2000.
These rising costs – far above general inflation – have already wiped out most of the gains in living standards made by families on low and modest incomes in the early 2000s, before the downturn began, according to research.
The analysis, commissioned by the Resolution Foundation think-tank, revealed the squeeze on living standards for ordinary households has been more severe than previously thought.
It found 30 per cent of working-age households now have incomes too low to afford the essential basket of goods.