Inflation now stands at its highest level in 11 years, new figures from the Office for National Statistics (ONS) have shown.

According to the group’s Consumer Price Index (CPI), which is considered the benchmark for measuring inflation, prices have shown that increases in costs of goods and services rose to 3.8 per cent in June, up from the 3.3 per cent recorded in May. The ONS noted that escalating food and petrol costs had driven up overall figures considerably. The former rose from an annual rate of 8.7 per cent in May to 10.7 per cent last month. Meat costs were in large part to blame for this overall increase, with beef prices rising the most. Fruit, bread and cereals, as well as oils and fats were also up on May’s figures.

Meanwhile, petrol prices again reached new highs, with charges at the pump found to have jumped 5.3 pence per litre to stand at 116.7 pence. So too, diesel rose 7.1 pence to stand at 130.5 pence per litre. Holidaymakers were also hit by inflated travel costs, the ONS indicated, while electricity, gas and other fuels rose to 13.8 per cent.

For those who have felt the pinch in spending areas such as these and have seen their finances put under pressure as a result, taking out a debt consolidation loan may prove an advisable course of action. In opting for this type of loan, consumers may be able to spread their monthly economic commitments over a longer period, giving them more spare capital to survive the current turmoil.

One area where consumers did feel some respite was in the cost of clothes and shoes, which were found to have fallen eight per cent and 4.2 per cent respectively. Women’s outer wear was said to have seen the biggest price falls.

Indeed, it seems consumers will be offered little assistance in terms of wage increases to meet the growing costs of living. The BBC reported that chancellor Alastair Darling, commenting on the findings, reminded workers and employers in both the private and public sectors to consider what will happen if pay packets are increased.

“We saw what happened in the past when inflation got out of control and people found that every penny they got in a wage increase was swallowed up by food and fuel prices going up,” he said.

However, the Labour government received criticism from other MPs for failing to do more to protect the consumer. Liberal Democrat Treasury spokesperson Vince Cable attacked the prime minister for failing to put in precautions against tumbling house prices and overstretched borrowing during his time in Mr Darling’s current position.

“Gordon Brown is now facing the consequences of years of inaction over spiralling personal debt and the unsustainable bubble in the housing market,” Mr Cable insisted.

For those who are suffering the consequences of inflated prices and falling property values, taking out a debt consolidation loan may provide assistance in meeting monthly commitments. Indeed, doing so may become necessary for a growing number of people after Bank of England governor Mervyn King said last month that inflation was likely to continue above target levels until well into 2009.

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