The price of essential items has gone up, putting a strain on already tight family budgets.
...but facing rising cost pressures
The price of everyday items such as groceries, rent and petrol have all increased by more than 10 per cent over the past two years. The Government is determined to ensure that families are not paying more than necessary and is taking steps to achieve this.
Food prices are 11 per cent higher than two years ago, with costs for some basic products growing even faster.
Since the start of 2006 average fruit and vegetable prices are up by 14 per cent, bread prices have increased 18 per cent while milk is 16 per cent more expensive.
Housing costs are a large part of most families' weekly expenses. Working families buying a first home are facing the highest mortgage repayments as a share of income on record, placing a real strain on family budgets. Rents are also increasing rapidly, up by 7 per cent over the past 12 months, and 12 per cent over the past two years.
Along with its plan to fight inflation, the Government is taking action in this Budget, delivering a Working Families Support Package to help relieve cost pressures and help ease some of the strain on family budgets.
Key price increases over the past two years
Food prices are 11 per cent higher overall than two years ago.