Covid-19: “Not just the economic fallout, but the subsequent surge in demand for manufactured products as various markets have reopened, which has had a knock-on effect of driving up prices.”
Rocketing energy costs: “Initially due to factors including a lack of wholesale gas supply following an unusually cold winter in 2020-21, then exacerbated by the tragic (still ongoing) conflict between Russia and Ukraine – Russia being a major international gas supplier.”
Chris J Ratcliffe
Food prices: “These have also been steadily climbing, due to factors ranging from changing global weather to a shortage of delivery drivers. A pint of milk, for example, cost 51p in April 2022, compared to 42p in April 2021, according to the Office for National Statistics (ONS).
Inflation: “[This is] a measure of the rising costs of goods and services. It’s based on a vast and virtual basket of goods which is updated each year to reflect changing consumer spending patterns. In 2022, meat-free sausages, canned pulses, sports bras, pet collars and antibacterial surface wipes have been added to the basket, while donuts, men’s suits and coal were taken out. The main categories these changing items fall under however, stay consistent. They include the fundamentals such as housing, transport, communication, health, and clothing. However, each category will be applied a different weighting every year.
When considering inflation, Laura advises that, “each household and individual will have their own ‘personal’ rate of inflation. For example, if you are a large-family household who does a big weekly food shop, uses a lot of energy at home and ferries the kids around in the car all day, the soaring cost of food, energy, and petrol is going to hit particularly hard.”
Makala and Laura advised GLAMOUR UK readers that the following expenses were increasing: Gas and electricity, House prices, Rent, Fuel, Food and non-alcoholic beverages, Clothing and footwear, Transportation, and Healthcare.
What did the government do in 2022 to help those affected by the crisis?
In May 2022, the HM Treasury released a statement confirming that millions of UK households would be eligible to benefit from £15 billion of targeted government support to help with the rising cost of living. The support package was partly funded through a 25% windfall tax on the “extraordinary” oil and gas firms’ profits, which had increased in the months leading up to the government scheme.