Energy prices sore twice as fast as Europe
Organisation for Economic Cooperation and Development said today that,” the rate of inflation on house hold energy bills and food shopping has risen twice as fast then any other country in the EU”. These finds show that the average house holds cost raised by 25% the same as it did last year as well. with Finland being the only country in the EU that comes closest to the amount of energy cost rises. With also the cost of super market food shopping this raised by over 10% which also Finland is the only country in the EU that can come as close on these finds. So with the rest of the EU reporting a raise of only 5% on food shopping and 11% on energy bills this shows that in fact in the UK we are paying more then double then any other nation in the EU.
So even with the Financial crises happening at the moment the people of the UK are still being hit with large raises in this sector. OECD also reflected on the price of oil over the summer of this year that went up to $150 a barrel, but now this has dropped dramatically with the loss of consumer spending, yet these energy companies have had a massive reduction in fuel cost, they yet show they are passing over the saving to the British public.
Yet energy companies now say the reason why the UK are paying more for their gas and electric bills is because the UK does not have the space to stock up on energy, so they can not take advantage of lowering prices when they happen. Although others believe that this is just an easy answer for energy companies. That they should pass the saving made on raw energy material should be passed on to the customer.
Supermarkets are also in the spot light as fallen Price’s of food and cost in transport compared to this summer have dropped, yet they still have not dropped their prices and now are being watched suspiciously, as they say their cost have dropped, but yet figures show that the average house hold is paying more then £1000 a year on the shopping bill. So it would appear that actions may be taken by government to finally drop the cost of energy and food, but fears are this would bring us into deflation rather then inflation.
