One in four Brits driven to financial breaking point by inflation

Household budgets bend under the weight of inflation

Inflation up to 3.5% as food and clothing prices increase

There has been a small rise in the consumer prices index (CPI) measure of inflation from 3.4 per cent to 3.5 per cent in March caused by an increase in the cost of food and clothing.
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The Office for National Statistics reports that the consumer prices index (CPI) measure of inflation has fallen to 3.4 per cent in February from 3.6 per cent in January.

With inflation at 4.5 per cent, a quarter of Britons are facing financial breaking point as their household budgets feel the squeeze to new extremes.

According to moneysupermarket.com, one in four households are nearing the point at which their outgoings will become unmanageable.

This follows six months in which inflation has taken weekly outgoings to £54 higher than their previous level.

Since May Day alone, payday loans have seen a 58 per cent increase in demand as Britons weather short-term financial affordability issues.

Head of banking at moneysupermarket.com Kevin Mountford says: "Many families will feel like their finances are approaching breaking point.

"However, there are still small steps they can take to help them save some vital pennies."

The suggested measures to consider include making use of discount vouchers and shopping around for the best prices on goods.

Simply spending wisely on a day-by-day basis could also help to keep outgoings to a manageable level, Mr Mountford adds.

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