Cost of Living increases across the UK

8 June 2022 - The cost of living increase in the United Kingdom has been affecting various industries across the country. Many British consumers have resorted to a frugal lifestyle in order to keep up with the rising prices. According to the Financial Times, households have dramatically reduced their spending in different areas, with the exception of holidays. 

During these inflationary times, food expenses have become a source of concern to the United Kingdom’s citizens, which has left them cutting back on such consumptions. 

Store prices have been greatly impacted which has led to a food inflation increase from 3.5 percent in April to 4.3 percent in May 2022. 

The Food Standards Agency (FSA) claims that the number of people who skip meals, reduce the size of their meals or use food banks has increased during this year. Many citizens also complain that healthy food options are getting more expensive. 

This year, restaurants’ expenditure fell down by 5.9 percent from May 2021. Pubs, bars and clubs saw a similar drop of 5.7 percent as well. It implies that Britons have been avoiding eating in restaurants or drinking out.

Barclaycard’s consumer spending data shows that almost half of UK’s credit and debit card transactions decreased within this period, which proves the lower consumptions of today’s British consumers. In addition, the surging costs of gas and electricity has resulted in households paying a 34.5 percent higher bill compared to last year. 

However, the travel industry has been seeing a positive impact. With less restrictions this year, Britons are more excited to travel. This resulted in a growth of 180 percent in comparison to 2021 in the travel sector. Hence, travel agents have also benefitted from the situation. 

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