Households across the country can go online and work out their own personal rate of inflation after the launch of a web-based calculator today.
The Office for National Statistics (ONS) unveiled the initiative to offer families the chance to tot up the rise in their cost of living against the national rate.
The inflation calculator has been launched to combat the growing mistrust in government statistics and the perception that the national inflation figures used do not reflect people’s own experience of inflation.
Household expenditure is a contentious issue following last week’s interest rate rise to 5.25 per cent and the New Year’s hike in train fares.
Daily living costs
Households can input their daily living costs into the calculator, such as food, drink and travel, alongside some of the bigger expenses, including mortgage repayments and home repair costs.
The monthly personal rate of inflation is shown alongside the national inflation data going back as far as January 2005.
But crucially, the calculator will not provide a direct comparison to the national rate of inflation, as it is based on the Retail Prices Index (RPI) and not the Consumer Prices Index, which is used by the Bank of England to set interest rates.
The ONS said RPI was ‘more recognisable’ and also factors in the cost of property.
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