Soaring fuel prices mean that country life costs the earth, says report

A new study which looks at rural inflation has found prices have jumped by 7.7 per cent in the countryside, compared with 4.3 per cent in the UK as a whole.

In Scotland – where a million people live in areas classed as remote – the difference is likely to be even greater, according to NFU Mutual, which publishes its first Countryside Living Index today.

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Its chairman, Richard Percy, said: “Our findings show that, on the whole, people living in the countryside have a better quality of life than their urban counterparts, but that costs associated with this are becoming increasingly difficult to bear for families on lower incomes.

“While there are clearly lots of people who pay this ‘countryside premium’ willingly and can well afford to do so, we cannot lose sight of the fact that there are also many others in rural areas who don’t enjoy the luxury of being able to move to cheaper areas and are struggling to make ends meet.”

The Countryside Living Index, which will be published every six months, compares the cost of 21 items in a typical “rural shopping basket” with urban prices.

Annual inflation of 13-15 per cent in electricity prices during the winter was also responsible for sustaining the rural inflation hike, along with increases in the cost of items such as pet food and tools. The comparatively high cost of heating oil also added to the problem of above-average inflation.

Faster-rising costs for key rural goods have only exacerbated the steeper prices already faced by rural consumers.

The report identified a “rural premium” of an estimated 5-10 per cent that is paid on everyday goods, with meat, tea and coffee seeing the biggest difference in price compared with urban areas.

NFU Mutual rural affairs spokesman Tim Price said: “In Scotland, these rises are making it particularly hard for many rural dwellers to make ends meet. The is due to a numbers of factors – including Scotland’s cold climate, which means higher heating bills, and the considerable distance many people have to drive to get to shops, schools, hospitals and the like.

“Heating a home with oil can cost four times as much as an urban property served by mains gas and, over the long term, rising petrol and diesel costs have made it increasingly difficult for people on low incomes to afford to run a car.

“While price rises are hitting everyone, we think the elderly and the young are bearing the brunt. Many elderly people retire to the countryside seeking peace and quiet in a friendly, attractive environment.

“However, since the economic downturn began five years ago, returns on savings have fallen but heating and transport costs have rocketed.”

Scottish Conservatives rural affairs spokesman Alex Fergusson said: “These figures are further confirmation that poverty is not just an urban problem and an issue that needs to be tackled.”

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