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Families hit with increase in cost of living British families have to cough up an extra £ 31,300 a year as food and fuel prices soar at their fastest rate in 17 years . Prices in supermarkets have climbed at an alarming rate over the past year .
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Escalating prices across multiple market sectors are causing difficult economic circumstances for British families .
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Analysts have warned that prices will increase further still , making it hard for the Bank of England to cut interest rates as it struggles to keep inflation and the economy under control . To make matters worse , escalating prices are racing ahead of salary increases , especially those of nurses and other healthcare professionals , who have suffered from the government 's insistence that those in the public sector have to receive below-inflation salary increases . In addition to fuel and food , electricity bills are also soaring . Five out of the six largest suppliers have increased their customers ' bills .
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The problem is exacerbated by the fact that salaries and wages have not increased at a comparable rate . The Bank of England , which typically uses interest rates as a mechanism for stablizing the economy , has been reluctant in this case to reduce rates , citing projected upcoming price increases .