There is no doubt that 2008 is going to be a tough year for almost everyone in Oxfordshire.

The Government tries to convince us that inflation is running at a very low level.

Yet we all know how the cost of virtually everything is going through the roof.

Food, transport, fuel, mortgages - you name it, prices are rising steeply.

And despite Government attempts to play down the crisis, the signs are that things will get worse as the year progresses.

Our survey today shows how typical households are being hit by spiralling inflation.

The question many people will be asking is - how are we going to pay these extra costs?

The Government has no real answers, except to say that we are all in it together and that times will get better - it hopes.

Our advice to readers is to take a close look at their finances - can I increase my income, or can I reduce my spending?

That exercise should be done now, not left until bankruptcy is staring you in the face.

The last thing we want is to see a sharp rise in house repossessions and thousands of people in severe debt.