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Inflation Rising Twice as Fast in Rural Areas

news - money

Published by the Pirate FM News Team at 3:24pm 3rd July 2012.

A report claims the cost of living in rural areas like Cornwall is rising twice as fast as big cities.

It says families here are forking out up to £2,000 a year extra on basics like food and fuel.

High oil prices are being blamed.

Tim Price is from NFU Mutual which did the research:


"What is driving this is the cost of oil and the big impacts are the rises in petrol and diesel prices for people to get out and about in their own cars and that being reflected back in the things that we buy locally,  where the distribution costs have increased again because of rising fuel prices"

He adds Cornwall is being dealt a double whammy:

"Jobs that pay well are very hard to find, but the cost of living is high because of high house prices, rents too are expensive and if people do manage to find a job, very often they have to drive quite a way to get to it"

However, despite rising prices, rural living beat city-dwelling life satisfaction scores in most other areas, with rural-dwellers enjoying particularly higher levels of satisfaction with their health and local environment.

As a result countryside residents are happier overall and less stressed than their urban counterparts.

Richard Percy, Chairman of NFU Mutual said:

“Our findings show that, on the whole, people living in the countryside have a better quality of life than their urban counterparts, but that costs associated with this are becoming increasingly difficult to bear for families on lower incomes."

“While there are clearly lots of people who pay this ‘countryside premium’ willingly, and can well afford to do so, we can not lose sight of the fact that there are also many others in rural areas who don’t enjoy the luxury of being able to move to cheaper areas and are struggling to make ends meet.”


Here is the full table ....

 

Components of the 'Countryside basket of goods' (Source: NFU Mutual & ONS)

 

 Countryside households

 UK households

Extra spend by countryside households compared to UK average

% Annual inflation rate at March 2012

 £ per week

 £ per week

 £ per week

Petrol, diesel and motor oil

£30.37

£20.60

£9.77

4.8

Domestic fuels (central heating oil, coal & coke, etc)

£8.40

£1.60

£6.80

4.7

Pets and pet food

£7.03

£3.73

£3.30

3.7

Vehicle repairs & servicing

£9.13

£6.37

£2.77

1.7

Electricity

£12.33

£9.70

£2.63

8.1

Wine

£5.30

£3.50

£1.80

2.6

Home maintenance

£5.20

£3.73

£1.47

3.2

Gardens, plants and horticultural goods

£4.03

£2.57

£1.47

-2.6

Tools and equipment

£3.13

£1.73

£1.40

12.6

Hairdressing and beauty salons

£4.63

£3.27

£1.37

1.6

Repair of major durables

£1.40

£0.30

£1.10

0.8

Flooring & carpet

£4.17

£3.37

£0.80

1.8

Motor spares & accessories

£2.90

£2.17

£0.73

0.8

Prescriptions and medical equipment

£2.40

£1.83

£0.57

1.1

Fruit

£3.57

£3.00

£0.57

1.8

Books

£1.90

£1.37

£0.53

-6.3

Fresh fish

£2.73

£2.30

£0.43

4.7

Cheese

£2.17

£1.77

£0.40

3.0

Major electrical appliances

£0.90

£0.50

£0.40

3.0

Newspapers

£2.23

£1.83

£0.40

3.4

Sport, outdoor and camping equipment

£1.30

£0.97

£0.33

-1.6

 

Additional spend per week = £39.04 per week / £2,030 per year.

 


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