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Students Learn Fast about Inflation

21-September-2008, Writes Dan Drage dan.drage@consumerchoices.co.uk

Accelerated inflation has pushed the student grocery bill to its limits.

Students heading to university this year will have to find £127.40 more than they did last year for their first year grocery shopping bill, according to new research from Abbey (www.abbey.com) Banking.

The research quizzed current students on items of food bought weekly from the Office of National Statistics Consumer Price Index or "basket of goods", the tool used to measure inflation, then calculated the weekly and yearly increase in costs.

Student spending on grocery shopping was relatively modest at an estimated £24.50 a week or £3.50 a day, but this excludes items of food such as sandwiches bought outside of weekly trips to the supermarket. The student shopping basket includes an average of 35 items.

Amongst the top 10 student items were staples such as bread, cereals and dairy products, all items that have been seriously affected by steadily climbing food prices. Breads and cereals, for example, have risen 13.7% in price over the past year while dairy products have experienced a 19% rise.

Steve Shore, Abbey Banking Director, had the following to say:

“Inflation is eating into student spending power at an incredible rate and for those heading off to university this year the increased cost of basic goods is likely to come as a nasty surprise. Students need to ensure that they're budgeting carefully in all areas, and should ensure that they have a competitive student account offering a good interest free overdraft and other benefits.”

Chris Eagle, Commercial Manager at CreditChoices.co.uk, has the lowdown on student banking:

“You should carefully choose your student bank account; the choice you make could save or lose you hundreds of pounds in the long term. Selecting the right deal could mean the difference between staying comfortably afloat through university or finding yourself hit with a string of hidden charges. Further information can be found in the CreditChoices.co.uk student account guide.”

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