to work out what s going up. last month we learned that in august the main inflation index reached 3.2%. that is the biggest month on month leap since records began. but food and fuel prices have of course been going up so some experts say that could go even higher. the bank of england thinks inflation could reach 4% by the end of this year that is way higher than their target of 2%, a number that would mean the economy was growing at a healthy rate under control. they ve warned that if things don t slow down they may have to increase interest rates. why? well, usually that deters spending, encourages saving and slows down the rise in prices. 50p here on groceries, a fiver there on petrol, utility bills spiking may all feel manageable in isolation. but most families will be feeling the pinch in some way. i ve been speaking with a family in manchester. this is ruth s kitchen diner, where it all happens. ruth cooks. mum and dad nigel and susan
for ruth, too. her public sector linked pay hasn t crept up, her husband lee s salary is stagnant, and christmas is coming. we re not too far off christmas. i m just going to talk you through amy s list. she wants airpods, telly for the bedroom, tickets for the theatre. ha! how does that make you feel? christmas is difficult because it s everything at once, and because amy s birthday is soon after christmas, actually there s not much of a break before we re back into purchasing presents for the second time. i worry that they re spending too much money on me sometimes i don t deserve it all. erm yeah, when i was putting the list together i did think, i m not going to ask for that cos it s a lot more money. and does it feel like there s money left for you? you work hard, you look after the kids are there any treats for ruth? treats for us are quite rare, actually. right. treats are more for the children. ok. so there s. treats for us are the last thing on the agenda, usually. what
come for a catch up. jack does his homework on his laptop. and amy checks her messages. and i ve come to see if they re feeling the force of inflation. are we ready to talk increases in prices? yes! so exciting, isn t it? laughter. how are things financially? we re just starting to notice the pinch a little bit. whereabouts is that? the biggest one for us is energy bill because we were with people s energy, who went bust. so the energy bill is doubling every month. whistle. and that s going from.? £120 to £250. ouch! and ruth is not alone predictions are that average energy bills could reach £1,600 by next summer. and what about when you go for the big shop for the family? anything you re noticing there? i ve noticed that the prices are higher for the overall shop, but where prices stay the same for things which jack likes