A report commissioned by Consumer Focus and carried out by the Institute for Fiscal Studies (IFS), found poorer households have experienced higher inflation on average than richer households over the past decade with the difference especially marked since 2008 – during the recession.
The poorest fifth of households faced an average annual inflation rate of 4.3 per cent between 2008 and 2010, while the richest fifth experienced a rate of just 2.7 per cent a year over the same period.
The study is likely to fuel concerns that child poverty could increase as a result of the recession.
Researchers found that during the period of the recession, dramatic cuts to interest rates reduced mortgage payments, which helped richer households.
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