Cost of living at HOME crisis: Analysis shows prices of white goods and gadgets have soared in UK
Cost of living at HOME crisis: Analysis reveals how prices of white goods and gadgets have soared by nearly 50% in just two years – as UK is hit by supply chain woes and inflation
Prices of white goods such as washing machines have ‘increased significantly’Average price rose 46 per cent between January 2020 and February 2022It comes as household budgets squeezed by rising energy bills and inflation A 1.25 percentage point national insurance hike also to come into place in April
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Analysis has revealed how prices of white goods and gadgets have soared by nearly 50 per cent in just two years – as the UK is hit by supply chain woes and inflation.
Prices of household items such as washing machines and cookers, as well as alcohol and toys, have ‘increased significantly’ over the period, according to new research of thousands of goods by consumer expert PriceRunner.
It has found that the average price of a washing machine rose by 46 per cent, or £152, between January 2020 and February 2022, ballooning from £327 to £479.
Average prices for a cooker, meanwhile, increased by £309, a 25 per cent increase, over the same period – jumping from £1,248 to £1,557.
It comes as household budgets are already being squeezed by rising energy bills and, from April, a 1.25 percentage-point national insurance hike.
Ministers are facing calls to rethink the national insurance rise as families are already dealing with a cost of living crisis, but the squeeze tightened even further today as inflation crept to a near 30-year high.
The headline CPI rate nudged up to 5.5 per cent in January from 5.4 per cent the previous month, with clothing and footwear costs adding to the burden.
PriceRunner research shows the typical charge for a tumble dryer or TV has increased by £70, the research found, while the average price for a tablet is now £68 more expensive.
Items such as children’s toys have too fallen victim to price hikes, with the average rising from £17 to £20.
Supermarket staples like pasta, tinned tomatoes and strawberry jam have also increased in price by around 8 per cent in just one year.
According to new figures, the overall price of a basket of 15 standard food items rose by £1.32.
Research recorded more than 17,000 price increases across the main supermarkets in January, more than double the number in the same month last year, and across every category.
Petrol prices also hit an all-time high this weekend, triggering more concern over the cost of living.
The average price of unleaded hit 148.02p a litre – surging past the previous record of 147.72p set on November 21 last year.
Experts have warned motorists to brace themselves for record prices on a daily basis amid a ‘perfect storm’ of global factors, including the Ukraine crisis. It means petrol could surpass the milestone of 150p a litre within weeks.
However, PriceRunner has found that the average prices of dishwashers dropped £44 between January 2020 and February 2022, while freezers are also £13 cheaper.
The headline CPI rate nudged up to 5.5 per cent in January from 5.4 per cent the previous month, with clothing and footwear costs adding to the burden.
The research found that the price of some supermarket staples have increased by 41 per cent
Laptops dropped by an average of £14, too.
Rising energy prices and fuel costs have been the biggest catalysts for rising inflation in the UK, while food and drink prices and many everyday essentials are also increasing.
The Bank hiked interest rates earlier this month to 0.5 per cent in the first back-to-back increase since 2004, signalling more are on the way as it looks to rein in rampant inflation.
It is forecasting that inflation will soar further due to painful energy price rises before peaking at 7.25 per cent in April – the highest level since August 1991.
Mr Sunak said: ‘We understand the pressures people are facing with the cost of living.
‘These are global challenges, but we have listened to people’s concerns and recently stepped in to provide millions of households with up to £350 to help with rising energy bills.
‘We’re also helping people on the lowest incomes keep more of what they earn by cutting the Universal Credit taper rate, and freezing alcohol and fuel duties to keep costs down.
‘In total we’re providing support with the cost of living worth over £20 billion across this financial year and next.’
Grant Fitzner, chief economist at the Office for National Statistics (ONS), added: ‘Inflation ticked up again in January, reaching a near 30-year high.
‘Clothing and footwear pushed inflation up this month and although there were still the traditional price drops, it was the smallest January fall since 1990, with fewer sales than last year.
‘The rising costs of some household goods and increases in rents also pushed up inflation.
‘However, these were partially offset by lower prices at the pump, following record highs at the end of 2021.’
The Prime Minister and Chancellor have insisted the rise in national insurance, meanwhile, which would raise £12billion every year, is vital to fund the NHS backlog and fix the social care system.
Foreign Secretary Liz Truss told LBC on Tuesday: ‘I don’t think anybody is happy with the idea of taxation in the Conservative Party.
‘We are a low-tax party, but we have spent a lot of money during the Covid crisis and we have to make sure that we are able to keep our finances in good shape.’
‘Obviously the Chancellor is responsible for making sure that we have the right fiscal policy to address that.’
And asked if there was any room to move the rise back from April, she added: ‘We spent £400billion providing support during Covid and the reality is that does need to be paid for.
‘The Chancellor has to look at the whole picture, he has to make sure we are able to balance the books and retain our hard-won financial credibility.’
