Cost-of-living crisis have been plaguing UK from many time now, but inflation is the new add-on which UK has seen in recent times. With increase in bills, and pay-cuts people have been demonstrating across the country. Now food prices have been soaring and has seen biggest increase in 17-years.
Store prices in the UK have jumped to 5.1% year-on-year in August from 4.4% in July, which is the highest growth rate since 2005. According to the report, food prices surged at their fastest rate since 2008 to 9.3% from last year. Fresh food prices were 10.5% higher than last August, up from 8% rise recorded last in July. Product prices such as milk and margarine have seen the biggest considerable increase.
This rise adds pressure on the existing cost-of-living crisis and also on the households which are coping with much higher energy bills and higher petrol prices. Those on the lowest income threshold are expected to be hit heard by inflation. Helen Dickinson, the chief executive of the BRC, said, “the situation is bleak for both consumers and retailers, but retail businesses will remain committed to supporting their customers through offering discounts to vulnerable groups, expanding value ranges, fixing prices of essentials and raising staff pay.”
Shoppers are already stretching their budgets by switching to discount stores, dropping brands in favor of supermarkets’ own label goods. Also they are cutting back luxurious spending such as subscribing services and gambling. Major of the cities are reducing car journeys and opting for public transports or walking. Banks have predicted that inflation in UK will hit 18% early next year. Unions have called on the government to increase the minimum wages to help families cope with inflations.
With inflation galloping at higher rates, time has come for government to take necessary steps in favor of the people. People with low income will slip down to below poverty line and students will in turn have to leave their studies. Its high time that government take steps quickly to handle the inflation from further increasing. Already, Russia-Ukraine war have played major role in increasing inflation across the globe and this burn has majorly been felt by the western countries.
