Graph showing consumers concerns about savings and earnings for 2012 and 2013. Source: L&G
The number of people concerned their savings will fall behind inflation over the next 12 months has risen from 29 per cent last year to 78 per cent, according to Legal & General.
L&G questioned over 1,000 people on their attitudes to inflation for its MoneyMood survey.
This amount rose to 85 per cent for those in Scotland and 84 per cent for those in the West Midlands. Consumers in Wales were least concerned with 69 per cent fearing their savings would not grow as fast as inflation.
CPI inflation stands at 2.8 per cent and 90 per cent of consumers questioned believe it will be the same or higher over the next year.
The Bank of England has already said it does not think inflation will reach its two per cent target within the medium term.
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Regarding earnings, 57 per cent were concerned they would fall behind inflation, up from 38 per cent last year. This rose to 66 per cent of consumers in Wales and 65 per cent in London and East Anglia.
Some 60 per cent said they expected their income to fall in real terms over the next year.
Mark Gregory, chief executive of savings at L&G, said: "For many households another ONS report saying inflation remains stubbornly high will be no surprise. The big change is that many more households have come to realise that they have to deal with high inflation combined with low interest rates, largely as result of the Bank of England's policy on QE.
"Since the Bank of England started cutting the base rate the 'typical' savings rate has plummeted. People will either have to save more or look to save in different ways, or both to combat inflation."
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