The UK cost of living crisis has been building since early 2021. At 10.1%, the current rate of consumer price inflation is the highest in 40 years and the Bank of England believes it could pass 13% in October.
The pressure of price inflation on UK household budgets has been compounded by the fact that wage growth has not kept up. A 2.8% drop in average real wages between March and May 2022 has left many people with little room in their budgets to afford rising prices. Add to this the highest tax burden in 70 years and it’s no wonder UK households are struggling.
