Prices on the up as inflation rises to 4%

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SCARBOROUGH’S families are feeling the pinch as inflation rises to 4 per cent.

Figures announced yesterday revealed the Consumer Prices Index rate rose from 3.7 per cent in December to 4 per cent in January.

The VAT rise and higher oil prices have been blamed for the shift, which puts inflation even further above the 2 per cent target.

Victoria Clark, spokeswoman for the Scarborough Chamber of Trade, said: “At the moment things aren’t too bad from a retailers point of view following the VAT rise. If people want something they are still going out to get it. Where things are tight is the every day commodities like food and fuel, affecting many families.”

The Consumer Prices Index, which measures the rate of changing prices, is the highest since November 2008, and has been at least one percent above target for 14 months.