It’s not just energy and daily needs where consumers are reducing spending. In real terms, this had led to average wages falling at the fastest rate for more than two decades.Īccording to the Office for National Statistics (ONS), more than three-quarters of adults are worried about the cost of living, with 41% of respondents spending less on food shopping and other essentials. This, coupled with increased demand for consumer goods and supply chain bottlenecks, is causing enormous problems for households in the UK. Soaring energy prices have seen domestic gas prices rise by over 94% and domestic energy up by 54%.
It is expected to peak at almost 9% by Q4 2022. In April 2022, inflation reached the highest level on record. The cost of living is rising and has been continuous since 2021.
