On the first anniversary of MSE’s Bills Tracker, this month’s data shows that while bills and inflation are rising at a steady rate, over the year bills and expenses have increased while inflation has fallen.
The average overall cost of household bills and expenses is up 2.2% over the 12 months to July 2018 – the same as June’s 12-month figure – but 0.1% higher than in July 2017.
Meanwhile, the headline CPIH figure – more on which below – also remained unchanged at 2.3% for the third month running, although it has fallen 0.3% since July 2017.
After a brief dip in May, energy prices have continued to rise, increasing by 6.7% in the year to July compared to 6.2% in June. Fuel costs also continued to surge, with diesel rising by 13.8% and petrol up by 11.7% over the 12 months to July, compared to 12.6% and 11.1% respectively in June.
The increase in other bills generally stayed steady, although insurance costs fell – overall insurance prices were down 1.6% over the 12 months to July, after a 0.5% increase in the year to June. Despite this, many will still be paying over the odds for their premiums – see our guides to Car, Home and Travel Insurance for details on how to save.
Our tracker, which launched exactly a year ago in August 2017, uses data supplied by the Office for National Statistics (ONS) to create a picture of the average price changes for household bills across the UK.
Inflation is usually measured by looking at the prices of hundreds of different items, but crucially our tracker cuts most of these out and focuses only on core expenses such as housing costs, energy and insurance – expenses which most households have and which typically make up the lion’s share of outgoings.