SAVERS have been hit this month as inflation rose sharply to a five-month high.
Figures released from the Office of National Statistics said October’s inflation figure was 2.7 per cent – a huge jump from September’s 2.2 per cent.
The rise has been blamed on skyrocketing university tuition fees and an increase in the cost of food.
With interest rates remaining at 0.5 per cent, those living off their savings are facing an increasing gulf between their income and outgoings.
Inflation is based on the Consumer Price Index – the amount of money it costs to buy certain things.
Institutions such as the University of Portsmouth almost tripled their tuition fees in September, with some asking the maximum of £9,000 each year from their students.
The University of Portsmouth is asking for £8,500.
The other reason for the rise was an increase in the cost of vegetables, as they were heavily affected by this year’s very wet weather.
The price rise from energy firm SSE, which operates Southern Electric, was not included in the figures for October.