Why Is Inflation Rising? With Katie Pilbeam.
Whether it’s your weekly grocery shop or your bill at the petrol pump - bills are getting higher and it’s likely your monthly wage slip - isn’t.
So what’s going on? Just this week market research group Kantar revealed some pretty dire figures - with more than a fifth of UK households struggling as the price of the weekly food shop rises 7%, that’s the highest level of inflation in 13 years.
What’s blowing the budget? Well your pet pooch’s favourite meals, those satisfying afternoon snacks and - beef.
And with energy bills rising 54% in April as well as National Insurance on the rise - many households now consider themselves to be ‘struggling’.
So why is all of this happening - well it’s a case of the perfect ‘storm’. Brexit playing a part, workers shortages, high demand in the wake of the pandemic, shipping costs, and now with the surging cost of energy, fertiliser and fuel all being passed down the supply chain due to Russia’s invasion of Ukraine.
Meanwhile energy regulator OFGEM has warned that millions of people could see their energy bills rise even higher to £2,800 later this year.
And we’re in Spring. The temperatures have not yet dropped. Which means the UK government is now under pressure to step up to help the most vulnerable from the chill and cost bite - because there is a real danger those people at the bottom of the food chain could be left out in the cold.