Food and fuel prices down

13 October 2008

Fuel prices fell this week and supermarkets prepared a new round of price cuts, easing the pressure on personal finances across the country, the Times reports.

Crude oil took a dramatic slide down to $86 (£50) per barrel, the lowest price in a year, as fuel companies lowered their prices to as little as 103.9 pence per litre for unleaded petrol.

The reductions will be a relief to the many UK households put under increasing pressure by rising costs over the past year, especially those who have been pushed into debt.

Stephen Robertson, director of the BRC (British Retail Consortium), said: “The man in the street and families will feel a little more confident as a result of the interest-rate reduction and lower commodity prices and this is particularly important in the run-up to Christmas.” A Think Money spokesperson also welcomed the cuts, but warned that they do not mean an end to the problems facing consumers. “Annual food price inflation stood at 10.7% in September, and it’s extremely unlikely that prices will fall back by this much. Prices will eventually stabilise so salaries should begin ‘catching up’, but that could be a few years away.

“Food prices continue to put pressure on a lot of households. We advise anyone who finds themselves struggling with debt to seek professional debt advice as soon as possible.”

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