The cost-of-living crisis is one of the main stories in the UK right now. And for good reason: inflation has risen over seven percent, climbing to its highest level in 30 years.
Essentially, this means that your money no longer stretches as far – goods cost more, while your wages have remained the same. Below, we explore the industries affected by inflation and how you can navigate these issues.
Automotive and Transportation
The automotive and transport industries have been impacted significantly by this crisis. The inflation rate for transport services reached a high of 13.4 per cent in March 2022.
This has largely been caused by supply issues in manufacturing. With parts being difficult to source, fewer cars have been built while demand has remained the same. As a result, new cars have become more precious, and their price has risen.
One way to work around this issue is to either sell your car for a cheaper option or alternatively, you could go for more affordable PCP finance by purchasing second-hand.
Gas and Electric
Gas and electric prices are also surging, with the knock-on effect being that it’s now more expensive to heat your home and fuel your car.
Indeed, from 1 April, about 18 million households on standard tariffs will see an average increase of £693 – from £1,277 to £1,971 per year.
Meanwhile, petrol and diesel prices have hit record highs. To limit the damage to your wallet, you can try shopping around for the most competitive prices.
But ultimately, the best way to save money is by being frugal with your energy usage. By using a smart metre and being mindful about your energy usage, you can try and limit your spending on energy each month.
Food prices have also risen during inflation, making your grocery shopping more expensive. Indeed, between March 2021 and March 2022, food prices in the United Kingdom increased by 5.9 per cent.
As a result, you’ll need to be strategic with your shopping to ensure that you don’t overspend. You can do this by making just one trip to the supermarket each week and sticking to the items you bought.
Ideally, you’ll make a specific list of what you need before heading out and you can simply purchase these items without making impulse buys. As long as your list fits into your budget then you should be in the clear.
The cost-of-living crisis poses plenty of problems for people in the UK. With the cost of goods and services rising it can be difficult to stick to a budget.
But by following the advice above, you should be well set to navigate these difficult times.