Power and food bills in the UK are rising at twice the rate they are in the European Union.
A report from the Organisation for Economic Cooperation and Development yesterday showed that British bills surged at the fastest rate of any EU nation in October.
Energy costs rose by 24.2 per cent compared with the same time last year, the OECD said.
That was twice the gain in Finland, which recorded the second highest rate of power price inflation.
And UK grocery bills gained 10.1 per cent, a rate matched only by Finland.
Across the EU, the average for food inflation was 5.5 per cent, while energy costs were up 11.7 per cent.
The OECD figures prove that UK consumers are still being hit hard by a rising cost of living despite the economic downturn.
The official rate of inflation, currently 4.5 per cent, has come down from a high of 5.2 per cent in September, partly because of the fall in the price of oil and the discounting of goods such as computers and DVDs.
Experts have been warning that the UK could face a bout of deflation - the opposite of inflation - as firms aggressively slash prices.
But so far there is little evidence of this in the official figures.
They suggest that some firms are rebuilding profit margins by refusing to pass on reductions in the costs of their raw materials.
Energy giants lifted their prices after the cost of a barrel of oil soared to nearly $150 a barrel over the summer.
Since then the cost of energy paid by utilities has dropped along with the precipitous decline in crude prices.
But this has yet to be reflected in bills, the OECD figures showed.
Richard Haddelsey, of energy analysts McKinnon & Clarke, said UK utilities are much quicker to pass on gains in wholesale costs of gas and electricity to consumers than rivals on the Continent.
Yet prices are often slow to come down afterwards.
That is partly because the UK has less gas storage, making it hard for utilities to stockpile gas during periods where prices are low.
But he said wholesale energy costs have tumbled recently, so utilities ought to start passing reductions on to customers.
'Wholesale prices are the lowest for 12 months or more, and that is already having an impact for industrial and commercial energy customers,' he said.
'It will take longer to filter through to domestic customers.
'But you would expect to see domestic price declines in the coming months to reflect the way the oil price has fallen back.'
The rapid gains in food prices fly in the face of assurances by supermarket giants that they have been easing the pain on consumers.
UK super-markets have been accused of ' fattening up' their profits despite the falling cost of raw produce on agricultural markets.
The Daily Mail's own Cost of Living Index showed that food price gains recorded in October continued into November.
The price of a typical shopping basket leapt by 21.3 per cent in November, adding more than £1,100 a year to family grocery bills.
JOBS AXE RECORD
The jobs market is 'heading downhill at breakneck speed', a devastating report reveals today. continues here
A report from the Organisation for Economic Cooperation and Development yesterday showed that British bills surged at the fastest rate of any EU nation in October.
Energy costs rose by 24.2 per cent compared with the same time last year, the OECD said.
That was twice the gain in Finland, which recorded the second highest rate of power price inflation.
And UK grocery bills gained 10.1 per cent, a rate matched only by Finland.
Across the EU, the average for food inflation was 5.5 per cent, while energy costs were up 11.7 per cent.
The OECD figures prove that UK consumers are still being hit hard by a rising cost of living despite the economic downturn.
The official rate of inflation, currently 4.5 per cent, has come down from a high of 5.2 per cent in September, partly because of the fall in the price of oil and the discounting of goods such as computers and DVDs.
Experts have been warning that the UK could face a bout of deflation - the opposite of inflation - as firms aggressively slash prices.
But so far there is little evidence of this in the official figures.
They suggest that some firms are rebuilding profit margins by refusing to pass on reductions in the costs of their raw materials.
Energy giants lifted their prices after the cost of a barrel of oil soared to nearly $150 a barrel over the summer.
Since then the cost of energy paid by utilities has dropped along with the precipitous decline in crude prices.
But this has yet to be reflected in bills, the OECD figures showed.
Richard Haddelsey, of energy analysts McKinnon & Clarke, said UK utilities are much quicker to pass on gains in wholesale costs of gas and electricity to consumers than rivals on the Continent.
Yet prices are often slow to come down afterwards.
That is partly because the UK has less gas storage, making it hard for utilities to stockpile gas during periods where prices are low.
But he said wholesale energy costs have tumbled recently, so utilities ought to start passing reductions on to customers.
'Wholesale prices are the lowest for 12 months or more, and that is already having an impact for industrial and commercial energy customers,' he said.
'It will take longer to filter through to domestic customers.
'But you would expect to see domestic price declines in the coming months to reflect the way the oil price has fallen back.'
The rapid gains in food prices fly in the face of assurances by supermarket giants that they have been easing the pain on consumers.
UK super-markets have been accused of ' fattening up' their profits despite the falling cost of raw produce on agricultural markets.
The Daily Mail's own Cost of Living Index showed that food price gains recorded in October continued into November.
The price of a typical shopping basket leapt by 21.3 per cent in November, adding more than £1,100 a year to family grocery bills.
JOBS AXE RECORD
The jobs market is 'heading downhill at breakneck speed', a devastating report reveals today. continues here
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