Two in three people believe the rate of inflation will rise further.
Few workers will ask for higher pay to combat meeting the costs of rising inflation.
Almost two third of Britons think the rate of inflation will rise over the next year, according to a Bank of England survey.
The study, carried out last month, highlighted that 62% of participants expect a rate rise, marking a 10% increase from figures recorded in November. It also showed that less than 10% of respondents said they would ask for higher wages to meet the cost of rising prices.
Over two thirds of people said that if inflation does rise in the coming months then the interest rate should be hiked to curb its effects. This would help savers who have failed to make a substantial interest on their deposited cash and witnessed an erosion in the value of their savings.
The CPI rose to 4% at the start of the year, up from 3.7% in December, which is significantly above the Bank of England’s 2% target. RPI also rose from 4.8% to 5.1%.
Some experts are calling for banks to help pensioners by paying a higher rate of interest to over 65s on their savings accounts. Dame Hilary Blume, director of the Charities Advisory Trust, said banks “could pay interest at one percentage point below the rate at which they lend”, in a letter to the Daily Telegraph.
Ross Altman of the Saga Group said that banks should help over 50s who are living on their savings because many of them do not have the option to earn more.
However, a spokeswoman from the British Bankers Association said: “Banks cannot legally offer preferential savings rates based on the age of the customer. There is a wide range of savings and investment products and customers should ask their bank or shop around for the one which suits them best”.