A report by the Commission for Rural Communities, says there has been a rise in rural households living in poverty over the past year.
As a result, Adam Symons, Prospective Liberal Democrat MP for Torridge and West Devon, has called on the Government to do more to help residents in sparsely populated rural areas.
The report - State of the Countryside 2008 - shows that for the poorest fifth of rural households, 50% of weekly income goes on essentials such as food, housing, energy and transport.
It also provides indications of increasing inequality within rural areas themselves, with a widening gap between less and more sparsely populated rural areas.
Official figures detailing Households Below Average Income data show that poverty increased by 3% in rural households compared with 1% in urban households between 2004/05 and 2006/07.
Mr Symons said: “Those of us who have to travel anywhere are feeling the pinch. The price of petrol and diesel, and rising costs of heating our homes is hurting everyone.
“The Government must help rural areas, as it is here that the deepest, and yet hidden poverty is occurring.”
He added: “Prices for travel and food are rising just as the Government plans to shut Post Offices and their associated shops in many areas, making people have to drive longer distances. This absurd plan will only lead to greater rural poverty.”
Affordable housing and access to services continue to cause widespread concern among rural people, as does the decline in services.
The commission said each year it had found there are fewer outlets for many services and poorer accessibility to services for people without cars.
Wages in rural areas are described as low and for many, work is not a secure route out of poverty according to the report. There has also been a continuing decline in the number of people working in agriculture.