Commuting freelancers hit by inflation's five-year high

Freelancers who have to travel to their clients will be at the sharp end of inflation rising as it did in September -- to its highest level for five years.

Issuing this alert, freelancers’ body IPSE explained inflation growing to 3.0% -- a level it last reach in April 2012 -- would hit freelancers hard, as they have above average transports costs.

Although such costs (which include air fares) actually decreased according to the Office of National Statistics, the decrease was by a much smaller margin than that seen a year ago.

Moreover, the price of fuel has climbed more than it did a year ago, in what will be “a blow” to the many freelancers who have to drive long distances for work, says IPSE’s Tom Purvis.

“And with the cost of train tickets climbing to an even higher rate, they [the self-employed] will be left with no choice but to take the hit from rising petrol prices,” he added.

Keeping fed and watered on the journey is also getting pricier, as the ONS found the cost of food and non-alcoholic drinks inflated by 0.8% to 3.1%; its highest level since 2013.

The Association of Independent Professionals and the Self-Employed (IPSE) reflected: “This increase means freelancers and others across the UK will now feel even more of a squeeze as their earnings fall further behind the cost of living.”

The association hinted at further bad news to come, notably for mortgage holders, as the five-year high in inflation means it might not be just freelancers feeling the greater pressure.

“This new inflation high will also put more pressure on the already heated debate about interest rates,” it warned. “With the next decision due on 2 November, it’s looking increasingly likely they will raise interest rates in the short term.”


18th October 2017

Related News

Latest News