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But although the weather is good, this year's summer holiday is unlikely to be carefree for the average family.

July has been peppered with official data showing prices continue to rise and households are struggling.

For the first time in 13 years there is evidence that inflation is beginning to outstrip earnings.

The Consumer Price Index, the government's preferred inflation measure, jumped from 3.3 per cent in May to 3.8 per cent in June, the highest level since 1992.

Separate data from the Office for National Statistics shows that average earnings in the past three months, compared to the same period last year, have risen 3.79 per cent – a fraction below CPI.

The last time the cost of living outstripped wages was in 1995.

In the past decade, wage growth has averaged 4.5 per cent, while inflation has until last summer kept well within the government target.

This means that the average family has ended the year wealthier than at the beginning. Without an increase in average income, rising prices are squeezing the household purse. And there is unlikely to be any let-up in sight.

Mervyn King, governor of the Bank of England, has warned inflation is likely to top 4 per cent, double its 2 per cent target, before it will peak.

With inflation expected to remain high, it is hard to see how the Monetary Policy Committee can vote to cut interest rates in the near future. It seems consumers are already preparing for high interest rates for the foreseeable future.

Our latest Corporate Markets Consumer Barometer shows 66 per cent of consumers are expecting interest rates to be higher next year than they are now. This means as well as feeling the pressure of prices now, they are likely to be adjusting their spending patterns to take into account higher rates next year.

A key benefit to consumers preparing for even higher bills is that they will not be taken by surprise should the MPC be forced to increase rates further. And if there is room next year to cut interest rates, consumers will enjoy some relief.

Already feeling the squeeze, the best advice for consumers beyond the summer and into next year is to prepare for the worst but hope for the best.

Kevin Purvey is head of intermediary sales for Cheltenham & Gloucester