Poorest hurt most by fuel price surge
The poorest sectors of society have suffered the most from the hikes oil prices have undergone over the last two years.
A study by John Hawksworth, the chief economist at PricewaterhouseCoopers, explodes the myth that the middle class have felt the impact the most, as they have bigger houses and cars.
Resent reports have concentrated on claiming that so-called middle-class inflation is nearer 10% than the two officially measured annual inflation rates of 2.4% and 3.3% on the consumer price index (CPI) and retail price index (RPI) respectively, because of things such as rising energy prices, school and university fees and council tax.
But the new research shows that the rise in general inflation caused by oil prices has primarily affected the poorest third of the population because they spend a greater proportion of their income on energy than the better off.