The latest results show that inflation in the UK is now at its fastest pace in 40 years.
According to the latest statistics, the consumer price index (CPI) rose by 9.4% year-on-year as a whole. Among them, milk, edible oil and flour all increased by more than 20%.
Even more worrying is the surge in energy prices, with further increases expected by the end of this year and early next year.
How to deal with inflation to reduce the pain of household budgets? We summarize the following points based on the opinions of experts.
Inflation — Energy Bills
Energy forecasters said the October bill could soar to £3,245 from the current £1,971. It will grow even further to higher levels early next year.
In this case, the government encourages households to build credit balances with energy suppliers to offset winter price increases.
Your best bet right now is to insulate your home and check doors and windows for tightness to prevent using more energy.
In addition to this, since electricity price growth is currently lower than that of gas, the use of electrical heating (electric heaters, etc.) is also a good protection against the cold.
Inflation — Food Bills
Affected by the epidemic and wars, the price of food including milk, edible oil and a series of staple foods has risen by more than 10%.
Many shoppers cut back on their meat and non-essential purchases, and replaced fresh food with some frozen quick meals.
Consumer experts say that as the price of groceries rises, consumers can opt for cheaper private labels (such as products with their own logo printed on the packaging).
In addition, you can choose a cheaper supermarket chain according to your budget and save money by reducing the number of shopping.
Finally, the cashback website and the supermarket’s own APP will have member point cashback activities and discount coupons, which can help you reduce the burden to varying degrees.
Inflation — Other Bills
In addition to rising living bills, other consumption needs to be adjusted according to the household budget.
Both phone and leisure bills can be reconsidered during this special time. For phone carrier, network and insurance expenses, shop around. Choose the most cost-effective payment according to your own needs and usage.
On top of that, canceling streaming or membership subscriptions can also help families save money.
In times of inflation, try to avoid loan consumption. Because inflation tends to trigger high interest rates, which means you pay more in interest than ever before.
Earlier the government started disbursing the first £326 subsistence allowance for low-income families, with a second payment in autumn.
Pensioner families will also receive an extra £300 in energy living allowance.
From October, households will receive a total of £400 in subsidy on their energy bills.
Finally, reasonable tax planning can also help you reduce the burden. If you have any questions, we will be happy to assist you. Click the blue word at the top of the article and follow us to get the latest consultation.