The UK Credit Crunch:

A year since the credit crunch spread from America to the UK, Britons are paying more for just about everything. From food to filling up the car, research by Times Online reveals that since August 9 2007, when the European Central Bank and the US Federal Reserve were forced to pump billions into the money markets, the effect of the economic slowdown has spread to every corner of the economy - and families are paying the price.

Fuel, energy and grocery bills have all risen by at least 20 per cent compared to August last year, while house prices have plunged and, if they fall even further, will leave 1.7 million people with mortgages worth more than their houses. The average annual gas bill has risen from £539 in August last year to £688 today, and will increase even more after British Gas recently lifted prices by an unprecedented 35 per cent. Electricity has also increased, and yearly annual bills are £58 dearer at £439. It is worse at petrol stations after oil prices have risen by 74.3 per cent since August 2007. Filling a 50 litre tank with unleaded petrol is £10.90 more expensive than a year ago, with drivers now paying £59.50 to fuel their cars.

Diesel users are even worse off, paying £66.55 to fill up when 12 months ago they paid £48.60. At the supermarket, families are shelling out an extra £1 for every £4 they spent 12 months ago. A trolley of 24 basic items today costs £27.87, compared to £23.05 a year ago, and the British Retail Consortium recently revealed that in the 12 months to July food inflation soared by a staggering 9.5 per cent - and it is set to get worse. Even a slice of toast will cost the average consumer over 100 per more than it did in August 2007. The price of butter has climbed by 65 per cent while a loaf of white bread costs 40 per cent more. A cup of tea is also more expensive, with tea bags now 27 per cent more and a pint of milk 14 per cent higher at 40p. Borrowing money to survive the economic slowdown is much less attractive. The rate on a £7,500 personal loan has risen from 6.1 per cent to 7.3 per cent in the 12 months to August. More alarming is the cost of buying a home for first-time buyers who pay 150 per cent more on a deposit for a two-year fixed rate mortgage, where the average cost has increased from 6.5 per cent to 6.95 per cent.

With inflation nudging 16-year highs and the economy slowing, the one year anniversary of the credit crunch provides no sign of a let-up in the pain for consumers.