11 things that have got cheaper since last year

The cost of living may be falling, but what are we spending less on?

The cost of living is cheaper today than it was a year ago. That's according to the Office for National Statistics anyway, which last week revealed that the Consumer Prices Index of inflation fell by 0.1% over the last 12 months. This means a typical basket of goods that cost £100 in September 2014 would have cost £99.90 in September 2015.

That's a pretty small fall, and it doesn't translate into everything we buy, especially things that aren’t included in the ONS's cost of living calculation.

So what is actually cheaper now compared to this time last year?

Fuel

Fuel prices are a lot cheaper this year than they were in 2014, thanks to the drop in the cost of wholesale oil.

The RAC said the cost of a barrel fell to $41.87 (£27) on 24th August, the cheapest oil had been since February 2009.

This led to a series of price cuts at petrol stations, which saw the cost of diesel fall below petrol for the first time in 14 years.

According to the latest figures from the AA, the average cost of unleaded petrol has dropped from 129.2 pence per litre (ppl) in September 2014 to just 111.2 ppl in September 2015, while the average cost of diesel has fallen from 133.4ppl in September 2014 to 110.4 ppl in September 2015.

Food shopping

The cost of a basket of grocery essentials fell 5% in the last year according to figures from mySupermarket.co.uk.

Each week the site looks at the prices of 35 weekly essentials at the major supermarkets including Tesco, Asda, Aldi, Sainsbury’s, Ocado, Waitrose and Morrisons. And it found the total cost for its essentials basket was £85.93 in September 2015, compared to £90.81 in September 2014. That's a saving of almost £5.

The biggest price falls have been seen on broccoli (-23%), fresh peppers (-16%), fresh chicken pieces (-16%), grapes (-11%) and cucumber (-11%).

The big four supermarkets – Tesco, Asda, Sainsbury’s and Morrisons – have been fiercely competitive on prices in order to win back market share from the likes of Aldi and Lidl throughout the year.

Energy tariffs

The cost of energy tariffs has also tumbled.

This time last year the cheapest energy tariff available was the First Utility iSave Fixed, which was fixed for 13 month and cost £961.79 a year based on average usage.

Today the cheapest tariff available is under £800! GB Energy Supply has launched the Premium Energy Saver, a variable tariff which will cost the typical household £799 year.

Take a look at The cheapest gas and electricity tariffs for more.

Compare gas and electricity deals with loveMONEY

Long haul and kids’ flights

Earlier this year the Government made two big changes to Air Passenger Duty.

The two more expensive bands, C and D, were scrapped on 1^st April 2015, with all destinations over 6,000 miles moved over to band B.

Band B this year will cost £71, so destinations that were previously classed as band C now cost £14 less, while former band D destinations are now £26 cheaper.

Under the new rules a family of four flying to India or the Caribbean in economy class should save £56 compared to last year.

In addition, the APD charge on economy flights for children under 12 has been scrapped since 1^st May 2015.

According to ABTA, a family of four with two children under 12 will save £26 on flights to Europe and £142 on flights to long haul destinations such as the USA, Thailand and Australia.

Half term holidays

The Post Office Travel Money Half Term Holiday Costs Barometer has found that ten out of 12 popular half-term family holiday destinations are cheaper this year compared to October 2014.

The report looked at the cost of a basket of eight holiday essentials: a family evening meal with drinks, a cup of coffee, a bottle of beer, a soft drink, a glass of wine, a large bottle of mineral water, sun cream and insect repellent.

You can see how the destinations fared in the table below.

The basket was cheapest in the Costa Del Sol at £42.49, down 3.5% compared to last year. But the biggest drop in the typical cost of a holiday basket was seen in Mombasa, Kenya.

The falls are linked to lower resort prices, but also the pound strengthening against certain currencies. The pound is up 6.2% on the euro and 10.5% up on the Kenyan shilling in the last 12 months, for example..

Televisions

The cost of audio visual equipment like TVs were 10% cheaper in September 2015 compared to September 2014 according to the ONS latest inflation report.

With Black Friday and Cyber Monday coming up the cost could drop even further!

Mobile calls to Freephone numbers

Ofcom made sweeping reforms to UK call charges earlier this year.

Since 1^st July 2015 mobile phone companies are no longer able to charge for calls to Freephone numbers, while the cost to 08, 09 and 118 numbers must be displayed more clearly.

Before the change mobile users were typically charged between 14p and 40p per minute.

Read Free 0800 calls from mobiles part of Ofcom call charge overhaul for more.

Shifting debt

The cost of transferring credit card debt using a balance transfer credit card has also gotten cheaper.

According to Moneyfacts the average balance transfer fee in September 2014 was 2.49%, but in September 2015 it had fallen to 2.31%.

So a debt of £5,000 would have cost £124.50 to shift last year but based on the most recent rates would be £9 cheaper to shift in September 2015 at £115.50.

The introduction of more and more fee-free balance transfer deals is likely to have helped drive the cost down.

On top of that, the deals on offer are even better than a year ago. For example, today you can enjoy 37 months of 0% interest on your balance, while a year ago the longest deal offered 34 months.

Compare fee-free and low-fee 0% balance transfer deals

Personal loans

The cost of borrowing through an unsecured personal loan has also plummeted.

Moneyfacts says the average rate when borrowing £5,000 over three years was 8.6% in September but dropped to 7.8% in September 2015. Right now you can get a loan rate over this term for as little as 4.3% with Clydesdale Bank and Yorkshire Bank.

Meanwhile Moneyfacts said the average loan rate on borrowing  £7,500 over five years was 5.8% in September 2014 and 5.6% in September 2015. The cheapest rate available on this basis right is 3.5% available from Clydesdale Bank, Yorkshire Bank, M&S Bank and Sainsbury’s Bank.

Compare cheap personal loans

Taking out a mortgage

The average rates on two-year fixed and two-year variable rate mortgages have also fallen.

Moneyfacts says the average two-year fixed rate mortgage was 3.78% in September 2014, but fell to 2.81% in September 2015, while the cost of a two-year tracker mortgage fell from 2.63% in September 2014 to 2.03% in September 2015.

Compare mortgages with loveMONEY

The Tesco Bank current account

Tesco Bank scrapped the £5 monthly fee on its Current Account in September.

Previously you would be charged if you paid less than £750 a month into the account. But now the Tesco Bank Current Account, which offers 3% interest on balances up to £3,000 as well as Clubcard points on spending, is free to all.

The change from the challenger bank was announced just after Santander said it would be hiking the cost of its 123 Current Account from £2 to £5 a month. Read Shocking new monthly charge for Santander's top 123 Current Account for more.

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