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FINANCE, INSURANCE & ACCOUNTING
RAILSTAFF MARCH-APRIL 2022
COST OF LIVING
CRISIS
W
ith the price of goods and energy going through the roof, RailStaff looks at the background to the cost-of-living crisis and what you can do if you’re struggling.
Unless you’ve been avoiding the news or haven’t checked your bank balance in the past six months, you’ll be more than aware that the cost of living has rocketed. The price of goods and services rose steadily throughout 2021, but in March this year inflation reached its highest point since 1992, which, combined with supply chain bottlenecks, sent the price of goods and services skyward. One driver of inflation has been energy prices, which have been creeping up for some time due in part to a return of global gas demand as pandemic restrictions were lifted, along with lower-than-normal production of natural gas. The pressure for consumers was compounded on 3 February when the energy regulator, Ofgem, raised the domestic energy price cap by 54%. So far, so depressing. But to make matters worse, in late February, the first major European war since 1945 broke out. While the suffering of the British public can’t be compared to those in Ukraine, the conflict has pushed oil and gas prices up further, dealing yet another blow to those standing on the financial precipice. Though prices have since fallen back slightly, they remain above their previous levels. Worryingly, the conflict may have a further an impact on food prices. Russia and Ukraine are important producers of numerous agricultural products. As a major producer of fertilisers, Russia has restricted exports, pushing prices up around the globe. It is also feared that Ukrainian farmers, impacted by the conflict, will be unable to tend their crops sufficiently, the impact of which will be poor harvest in the summertime. Long term effects are feared, and the UK’s National Farmers’ Union has warned that the disruption to food output may last for years.
SORRY STATISTICS The average UK earner has been feeling the pinch for some time, but in the past 6 months, belts have tightened considerably. According to the latest figures from the Office for National Statistics (ONS), around 87% of UK adults reported an increase in their cost of living over the previous month in March 2022. This compares to around 62% of in November 2021. The ONS report - The rising cost of living and its impact on individuals in Great Britain: November 2021 to March 2022 – also found that almost a quarter (23%) of adults found it difficult to pay their usual household bills in March 2022, compared with a year ago; an increase from 17% in November 2021. The most common reasons reported for increased cost of living were increases in the price of food shopping (88%); gas or electricity bills (83%); and the price of fuel (77%). RAILSTAFF.CO.UK | @RAIL_STAFF | FACEBOOK.COM/RAILSTAFF
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REPORT BY MATT ATKINS
