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Household bills are rising more slowly than the rate of inflation, new research has found.

The figures suggested that key elements of the “cost of living squeeze” may be less severe than previously thought.

Research by MoneySavingExpert, based on official data, revealed the rise in the total cost of household bills was less than the inflation rate.

Although the numbers show only a small increase across household running costs as a whole, they also revealed large price hikes for electricity and insurance in particular.

The cost of insurance rose by 7.6% over the year, including a 12% jump in car insurance premiums. Energy bills went up 5.1%, including a 9% increase for electricity. The data was compiled before British Gas announced a 12.5% price hike on 1 August.

http://www.bbc.co.uk/news/business

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