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 Many households face financial difficulties because the Consumer Prices Index (CPI) and the true rate of inflation do not match up.
That is according to website Fool, which said that people are worse off than the government is letting on.
The Office for National Statistics revealed that inflation is at three per cent.
However, Fool puts the figure at eight per cent and says that homeowners will continue to struggle with financial difficulties unless something is done to bring down the true inflation figure.
"The gap between what we earn and what we spend means we have less money to put away. But as the hole turns into a chasm, we are required to patch up the deficit with money previously salted away. However, a point is reached when the gulf can't be bridged," said David Kuo from Fool.
"Fool urges consumers to monitor their household budgets carefully to avoid falling into the government inflation trap.
"Just because someone calls the tail on a dog a leg, it doesn't make it a leg. Pause and think - a dog still only has four legs and a tail," he added.
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