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FM38 - Revealed: the real rate of inflation According to the official Consumer Price Index measure, inflation is running at only 2.5%. Yet recent findings show that food costs alone are rising at 15.5% a year - more than six times the official rate. And there are double-digit increases in other 'must-pay' essentials such as petrol, gas and electricity. Many families need to find more than £1,200 extra a year just to stand still. Once higher mortgage costs are added, millions are having to pay out at least another £2,000 a year to keep their heads above water.
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