You thought your bills were rising faster than inflation. You're right

But every Londoner knows that the consumer price index figure feels like a gross underestimate. Fuel, food, utility and council tax bills have all rocketed this year.

Economists put the capital's inflation figure at 4.3 per cent but with house prices beginning to fall, the outlook seems much worse.

As concern about household bills grows, the Standard has created a panel of readers who will reveal the true cost of living.

Each month, our inflation index will examine the cost of 10 items in a typical London shopping basket to measure exactly how much more we are being forced to pay.

Couples, families and young professionals will reveal how the most basic items, such as bread, milk and fruit, change price. We will follow their progress as the credit crunch really bites and will capture the "hidden horrors" of household bills - that unexpected repair to a boiler or a vital dash in the car that costs the earth in petrol.

The panellists will also share their worries about the future of the economy. Charlotte Hopkins, 33, a mother from Camden, said: "Everything is more expensive in London."

Vicky Redwood, UK economist at Capital Economics, said: "Londoners tend to spend more money on the services that suffer most from inflation, such as eating out, going to bars or the cinema and even the hairdressers.

"Prices for goods are also higher than elsewhere. It costs more to deliver groceries to London and shops tend to pass this on to the consumer."

Family with one child, both parents working

Charlotte Hopkins, 33, husband Nick, 36, and daughter Emily Constance, seven months
Jobs: Nick is an investment banker and Charlotte is a doctor.
Home: Renting a two-bedroom flat in Camden while renovations are carried out on their house in Kentish Town.
Monthly outgoings: electricity £24; gas £35; water £35; rent £1,451; council tax £100; eating out £180; groceries £300; travel £70; fuel £75; clothes £60; unexpected expenses (car repairs) £50; savings £475; major buys (fridge freezer, TV projector) £200.
TOTAL OUTGOINGS: £3,020
Hidden Horror: "I am on maternity leave and so have been visiting my family [in Lincoln and Worcester] a lot more and have ended up putting a lot more petrol in the car. It has made a huge difference as it used to cost £48 to fill up but now it costs between £56 and £60. I now see my family once a month, whereas I used to see them once every three or four months. "I have also found that I am eating lunch out with friends about four times a week, which costs between £10 to £15. At work I just took my own lunch and only ate out about once a week. I also buy lots more cups of coffee."
Cost of Living: "Everything is more expensive in London, except for transport, which I think is cheaper. I find food is more expensive than it used to be, especially good quality meat and vegetables. I used to buy meat to go in the freezer for £15 to £20 but now it's more like £30 and that would probably only last a couple of weeks."

The young couple

James Spybey, 21, and girlfriend Kat Baker, 22
Job: James is training to become a barrister and Kat is a student journalist.
Home: A two-bedroom flat in Fulham (rented).
Monthly outgoings: electricity £20; gas £20; water £58; rent (including council tax) £1,1200; travel £182; groceries £175; eating out £70; going out £50; clothes £40; unexpected expenses (dinner parties) £40.
TOTAL MONTHLY OUTGOINGS: £1,855
Hidden Horror: "We received a water bill for £349 to cover the next six months. We will only be in the property for another three months and so assumed we would only have to pay for that time. Instead, we have to claim back the extra three months just before we move out. We hadn't factored this temporary cost into our monthly outgoings."
Cost of living: "Having lived in London for only nine months, we have found the extra cost of living quite difficult to adjust to. Food and rent are both more expensive. Fresh vegetables cost more and the quality is often not as good."

Family with two children, one parent working
Emmanuel Bourdon, 28, wife Davinia, 28, and sons Olivier, two, and Sebastien, 10 months
Jobs: Emmanuel is a wine specialist and Davinia is a full-time mother.
Home: A rented two-bedroom flat in Twickenham.
Monthly outgoings: electricity £40; gas £40; water £35; council tax £125; TV licence £11; rent £900; petrol £65; travel £45; road tax £17; car insurance £21; groceries £568; eating out £273; going out £208; clothes £100; credit cards £30; phone and internet £158; unexpected expenses (£2,500 deposit for moving house) £184; major buys (fridge, car) £100.
TOTAL MONTHLY OUTGOINGS: £2,920
Hidden horror: "Our rent went up by £100 only two weeks ago. It has happened a couple of times already and we decided to move straightaway to try and get more for our money." Cost of living: "I have noticed the biggest difference in gas and electricity, the direct debit has gone up by £10 a month for each of us. But the supermarket shop is definitely more expensive. My bottle of wine has gone up by 30 pence since the budget."

The young professional
Clive Selwyn, 29
Job: Anaesthetist
Home: A rented flat in Willesden Green shared with a friend.
Monthly outgoings: rent, including electricity, gas, water and council tax £690; fuel £200; groceries £200; eating out £200; going out £200; clothes £100; mobile phone £80; car insurance £100; professional indemnity insurance £20; subscriptions £10; unexpected expenses (parking tickets, car repairs) £200; major buys (holiday) £200
TOTAL MONTHLY OUTGOINGS: £2,200
Hidden Horror: "I went to Las Vegas for a week and it was more expensive that I thought it would be. I spent a couple of hundred pounds more than I had expected on gambling and room service."
Cost of living: "I don't feel I am in a position to buy my first property. If prices come down I would think about moving in the next 12 months but at the moment houses are massively overpriced. "There is still a disparity between how much people are paid in London and the costs of living. Food has got a bit more expensive and fruit is really expensive, which annoys me. The Government is trying to promote healthy eating, so it should be subsidised. In other countries fruit is much cheaper."