New statistics reveal that many companies have been dramatically ramping up prices for the past decade, vastly outpacing inflation in the process.
Over the past 10 years, households have seen their bills and cost of living steadily increase, but in some areas costs have shot up like a rocket.
The research from the Office for National Statistics (ONS) shows that, while inflation rose by 27.2% between 2005 and 2016, the cost of some household essentials have risen by far, far more.
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Education
The biggest rise was in the cost of education, with school fees going up by 159% in a decade. Every £100 spent on university and private school fees in 2005 now costs £259.16.
This is largely due to the increase in the cap on tuition fees which, in England and Wales, has risen from £1,000 in 2005 to £9,000 today.
Energy
Energy firms are responsible for the next biggest rise. The price of domestic gas has risen by 124% since 2005, more than four and a half times the rate of inflation. Meanwhile, the cost of electricity is up 98%.
Every time gas bills go up energy firms blame the increase on rising wholesale costs but energy firms, and their shareholders, are making huge sums from the increase. An investigation by the Competition and Market Authority found that some of the biggest firms are making profits of £1 billion to £2 billion a year.
If you are hoping to escape the tyranny of the energy firms by installing a wood burner to heat you home, there is bad news. The price of coal, wood, charcoal and wood pellets has increased by 83% over the past decade.
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Insurance
Insurance companies are also increasing their prices at a far greater rate than inflation. The cost of car and travel insurance is up 118%, compared to an inflation rate of 27.2%. The average car insurance premium is now £462, according to the Association of British Insurers.
The rise in insurance premiums is being blamed on an increase in fraudulent claims, the growing cost of repairing fancy cars and the Government’s increases to Insurance Premium Tax, which has risen from 5% in 2005 to 12% now.
Health insurance has risen in price by 102%.
Booze and pets
Fancy a pint to recover from the horror of all these soaring costs? Unfortunately, that’s going to cost you a lot more now than it did in 2005. The price of alcoholic drinks has risen by 62% over the past decade.
Even Fido is digging around in your wallet – the cost of pets and the paraphernalia that comes with them has risen by 39%.
Is everything increasing in price?
You’ll be glad to hear that they’re not. In fact, the price of some things has fallen dramatically over the past decade.
The biggest price drops have been in technology with cameras and video recorders costing 90% less in 2016 than in 2005. Laptops, tablets and computers have seen the next biggest price drop – 76% over ten years.
Flatscreen TVs and stereos have fallen in price by 62%, while CDs, DVDs and music downloads now cost almost 20% less than a decade ago.
Clothing and footwear has also fallen in price, down by 17%.
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