Inflation rises to 3.5% in March

family budget calculations

family budget calculationsHigh inflation has hit many of us in the pocket recently, with everything from the value of our savings through to the price of the weekly food shop affected.

Sadly, things aren't getting any better when it comes to the UK's rate of consumer prices index (CPI) inflation. New figures from the Office for National Statistics show that the CPI rate rose to 3.5% last month.

This compares to the previous month's rate of 3.4%.

A soft drop in food bills and weaker decreases in the costs of recreation and culture-related activities fuelled the March surge in inflation. And rising clothing and footwear costs also took their toll.

The inflation increase goes against recent predictions from the Bank of England, which had suggested that inflation would fall at a swift pace throughout 2012.

Last month saw rising fuel prices hit motorists hard, with record high petrol costs recorded.

Read this guide to find out how you could safeguard your savings against the dangers of inflation.