For the first time in over 30 years, the UK inflation has reached an all-new high. The last inflation rate that was this significant was recorded 30 years ago at a rate of 6.2%. The UK inflation rate has risen to 7% this year. Although the rates are increasing, the wages aren’t, resulting in panic and concern across the UK.
In this article, we will discuss why the prices are rising so quickly, how it’s affecting people and what you can do to reduce your expenditure.
Why are prices rising so quickly?
The main reason why prices have increased so dramatically is due to the Russian invasion of Ukraine.
With Russia being one of the leading oil distributors and with the demand of oil being so high because of the invasion, the prices of oil have increased significantly. Even though the UK only imports 6% of its crude oil from Russia, the global impact that the invasion has had has forced prices to increase for everyone.
How it’s affecting people
The prices have hit everyone hard; however, it has hit some people harder than others.
Poorer families are in debates of whether they should put petrol/diesel in their car or put food on the table. This worrying time for families has put immense pressure on the government to help those in need. Rishi Sunak claims that “we are taking action to ease the burdens by providing support worth around £22bn in this financial year, including for the most vulnerable through our Household Support Fund”.
What you can do
Instead of driving a car that burns petrol, many will start switching to an electric car or even biking. This will not only help with ridding the cost of fuel, but it is also much better for the environment. If buying or exchanging your current car is too much of a drastic change, you can always try to drive as smoothly as possible, use higher gears and stick to the speed limit. This way, you’ll burn less fuel, saving you money.