Inflation in London up 60% in 20 years

Soaring housing and transport costs have pushed up inflation for the average London household nearly 60% in the past 20 years, new figures showed on Wednesday .

The bill is nearly a third higher than the 46% rise in the cost of living outside the capital since 1997, according to an analysis of Office for National Statistics data by financial planning group Tilney.

The average Londoner’s cost of renting and buying homes has jumped 123% in the past two decades, compared with 84% outside the capital.

Transport costs have meanwhile jumped 51% compared to 38% elsewhere, because capital-dwellers are more reliant on fares, which have risen dramatically since 1997.

Those outside the capital rely far more on cars, but the cost of buying and maintaining a vehicle has risen much more slowly.

Tilney’s head of financial planning Andy Cowan, added: “A typical London household would need any savings or investments over the last 20 years to have generated a tax-free return in excess of 60%, just to stand still in real terms.”