Private renters are dealing with annual inflation of 3.9% – hitting them harder than other groups.
In comparison general household cost inflation stood at 2.8% in the year to December, while mortgage costs rose by 3.1% year-on-year.
The data comes from the Household Costs Indices for UK household groups from the Office for National Statistics.
Sarah Coles, head of personal finance, Hargreaves Lansdown, said: “Renters are facing the horrible consequences of runaway housing costs. This is particularly difficult given that they had less spare income to manage in the first place.
“Inflation increased across the board, partly because transport prices were on the rise, but also because prices of things like electricity and gas are falling more slowly than they were three months earlier.
“Homeowners faced higher costs thanks to higher mortgage rates, hitting those with large homes and big loans harder. It’s a major reason why both higher earners and those with children saw higher inflation rates.”
