How the cost of living crisis will affect supply chains and energy prices in the UK

Asia's Tech News Daily

Middle-income households will be worse off next year due to the rising cost of living and tax increases, an independent think tank has said.

The Institute for Fiscal Studies said the Budget spelled a “worrying outlook for living standards”, warning that rising inflation rates and higher taxes would cancel out any increase in wages.

It comes after the Government’s economic forecaster warned that the cost of living could rise at its fastest rate for 30 years.

The Office for Budget Responsibility (OBR) said that inflation could reach almost 5 per cent.

i breaks down what this means and how it could affect you.

What is inflation?

Inflation measures how the prices of goods and services that households buy changes over time. It is measured in a range of ways, the main one being the Consumer Prices Index. This records how much it would cost to buy 700 commonly-bought items including food products and household goods.

High inflation means that the cost of living goes up, as the prices of goods such as food and energy increase.

How the cost of living crisis will affect supply chains and energy prices in the UK
© Provided by The i Read More – Featured Image

Food

Will I pay more in the supermarkets?

Food prices are rising more quickly than expected, according to the British Retail Consortium.

Britons were forced to pay nearly £6 more on their shopping over the past month than during the same period in 2020 because of rising inflation, analysis suggested.

According to market insights firm Kantar, grocery prices rose by 1.7 per cent during the past four weeks compared to 2020, leaving the average shopper paying an extra £5.94.

The typical household spends £4,726 per year in the supermarkets, so any future price rises will quickly add up,” Kantar said.

Why are prices rising?

This is largely due to worker and HGV driver shortages, rising energy costs and additional costs from Brexit, all of which make goods more expensive to produce and distribute to supermarkets. This in turn can cause price hikes.

In August, wholesalers warned that the cost of basics such as cooking oil and vegetables had soared.

And the amount of food we get for our money may also reduce. The boss of Nestlé – which owns brands including KitKat and Nescafé, recently admitted that the firm may have to cut the sizes of some of its products to help the business cope with increasing costs.

Alongside this, there have been shortages of some products in supermarkets and food outlets due to supply chain problems.

What if I buy food out?

Food outlets have also been hit by the rising prices. Shan Selvendran, the boss of the Morley’s fried chicken chain, told i that chicken prices had risen by 13 per cent and lamb ribs had doubled in price, forcing him to consider price rises.

“We will have to raise prices eventually. Meals could go up by at least 20p. I feel sorry for the customers because wages aren’t rising, but I have no choice,” he said.

Other goods

Will non-food purchases go up in price?

It’s not just food which is seeing price hikes and shortages, with rising shipping costs and HGV driver shortages taking their toll. The UK has an estimated shortfall of 100,000 HGV drivers, which has made it difficult to get products to shelves.

Brexit has also worsened supply chain problems, with delays at ports leading to delays in deliveries.

The shortages of HGV drivers have seen international shipping costs increase up to tenfold, meaning that the price of many goods imported from overseas has risen.

Furniture, garden and DIY equipment and electrical goods are some of the products which have seen recent price rises.

Energy

Will my fuel bills go up?

Wholesale gas prices have more than quadrupled this year, rising by more than 70 per cent since August alone. This means fuel bills are on the rise.

The soaring prices have also forced some smaller energy firms into collapse, including Avro, Green, Igloo, Utility Point, People’s Energy, PfP Energy and MoneyPlus Energy, meaning that some customers may have to change energy providers.

Why are prices rising?

This is largely a supply and demand issue; as the economy rebounds from the pandemic, the demand for energy is going up, but supply is currently low.

In part, poor supply comes from a cold winter in Europe which left stocks in Europe unusually low, while Russian pipeline gas supplies have also been lower than expected. Asia also suffered a cold winter, so has been competing to import liquefied natural gas.

The energy price cap has been increased, which the OBR said has contributed to raising the cost of living. The cap puts a limit on the price that suppliers in England, Wales and Scotland can charge customers for energy on a standard tariff.

Money management

Will my pay go up?

While workplaces are not obliged to increase pay in line with inflation, it is often used as an argument when employees are negotiating pay. This could see some workers receive a pay rise in line with inflation, which would help to line up earnings with the cost of living.

How will savings be affected?

At the moment, interest rates are very low, with the highest rate offered by banks standing at around 1.5 per cent. If inflation hikes but interest rates don’t go up, your money will lose buying power in real terms.

What about loan and mortgages?

Many loans – such as tuition fees for students – are linked to inflation, so rising inflation rates could increase how much you pay back.

However, many people have fixed-rate mortgages which means they should not be affected by inflation.

Will my pension increase?

The state pension is linked to inflation. The Government last month suspended the pensions “triple lock”, a policy which guarantees the state pension rises in line with whichever is the highest of inflation, earnings or 2.5 per cent.

Because of the way wages have artificially inflated because of the pandemic, the Government has scrapped the measure for April 2022 to avoid a costly pensions bill.

However, the Government is insisting state pension payments will be aligned with inflation; a temporary double lock will mean the state pension goes up by the rate of inflation rather than earnings, which could have been around eight per cent and cost nearly £5bn more.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Lindsay Lohan is engaged!

© Bang Showbiz Lindsay Lohan is engaged to Bader Shammas Lindsay Lohan has gotten engaged to Bader Shammas after two years of dating. The ‘Mean Girls’ star made her relationship ... Read more »

Deepika Padukone looks electrifying as she vibes to ‘83' co star Harrdy Sandhu's Bijlee Bijlee; WATCH

Deepika Padukone dropped a glimpse of her Sunday night and it looks like the actress is totally enjoying herself. Lately, the actress has been quite active on her social media ... Read more »

ISL 2021-22 Highlights: Bengaluru FC Play Out 1-1 Draw with Kerala Blasters

© Provided by News18 ISL 2021-22 Highlights, Bengaluru FC vs Kerala Blasters: Ashique Kuruniyan fumbles and sends in Leskovic’s ball across the face of the goal and Kerala Blasters equalise. scores ... Read more »

Jurgen Klopp admits Liverpool mistake was down to him not trusting his players

Liverpool manager Jurgen Klopp has expressed his regret at not trusting certain players last season. The Reds lost several key stars to injury, as their Premier League title defence crumbled ... Read more »

State pension ‘hack' could boost sum for grandparents by over £2,000 - act now

The state pension is important for large numbers of older people as a key source of income in later life. For this reason, it is not surprising that many will ... Read more »

UK weather: Temperatures could plunge below zero as ‘Arctic shot' batters country

Forecasters have warned that the UK will see the “coldest night of the season” with temperatures plunging to as low as -10C. © Peter Summers/ Getty Images Storm Arwen hit ... Read more »

Covid: UK records 37,681 cases and 51 deaths in latest daily figures

The UK recorded 37,681 Covid cases and 51 deaths on Sunday, according to the latest daily figures. © AFP via Getty Images GettyImages-1229119158.jpg It is lower than Saturday’s total of ... Read more »

Mother returns adopted son into care citing challenging behaviour

© Provided by Daily Mail MailOnline logo A mother who adopted a pair of brothers seven years ago has revealed how she felt forced to return one to the care ... Read more »

Where has Omicron spread – and why are scientists so concerned?

© Provided by The Guardian Photograph: Hollie Adams/Getty Images Where has Omicron been detected so far? © Photograph: Hollie Adams/Getty Images A public health message displayed at Heathrow terminal 5 ... Read more »

Man City vs West Ham: Five things we learned as Ilkay Gundogan hits winner in Premier League

© Getty Images GettyImages-1356000593.jpg Manchester City overcame heavy snow to defeat West Ham in the Premier League on Sunday and move six points clear of the fourth-placed Hammers in the ... Read more »

'Has to go', 'Sell', 'Just awful' - Many Man City fans blast 'heartbreaking' player v West Ham

A number of Manchester City fans were unimpressed with Aymeric Laporte in their 2-1 win over West Ham United in the Premier League on Sunday.   © Provided by Transfer Tavern ... Read more »

Michael Carrick explains decision to drop Cristiano Ronaldo for Manchester United's trip to Chelsea

Manchester United’s caretaker coach Michael Carrick has benched his former club teammate Cristiano Ronaldo for the side’s trip to Chelsea this afternoon. Following Ole Gunnar Solskjaer’s sacking seven days ago, ... Read more »

Carrick explains why Ronaldo was on the bench in Man Utd's Premier League clash vs Chelsea

Michael Carrick has been explaining why Cristiano Ronaldo was left out of his starting XI for Manchester United’s Premier League clash with Chelsea at Stamford Bridge. The Red Devils’ interim ... Read more »

Premier League table 2021/22: Latest standings, fixtures, results for gameweek 13 - Man City second

Manchester City moved back up to second in the Premier League after beating West Ham 2-1 on Sunday. © ES Composite PLMatchDayTableNEWv4.jpg Liverpool had moved above City by thrashing Southampton ... Read more »

'Going to be hard' - Journalist reveals what he's heard about Newcastle's January transfer plans

Alan Nixon has revealed what he has now heard about Newcastle United’s January transfer plans. © Provided by Transfer Tavern James Tarkowski Burnley The Lowdown: Tarkowski signing? James Tarkowski has ... Read more »

Manchester United transfer news: Real Madrid abandon Paul Pogba pursuit

Real Madrid will not pursue a move for Manchester United midfielder Paul Pogba at the end of the season, say reports, despite the Frenchman coming to the end of his ... Read more »

Soccer-Leicester fire four goals past Watford in winter wonderland

LEICESTER, England (Reuters) -Leicester City thumped Watford 4-2 in the Premier League amid heavy snowfall which reduced visibility and made playing conditions difficult at the King Power Stadium on Sunday. ... Read more »

Maralinga nuclear tests: descendants of displaced buy shares in company planning WA uranium mine

Photograph: National Archives of Australia/AAP Purchase designed to enable Indigenous objections to Mulga Rock project as environmental approval set to expire in three weeks Get our free news app; get ... Read more »

‘Brought me to tears': family that won landmark NDIS challenge now faces cut to support

Exclusive: autistic man’s funding package reduced by $38,000, leaving him in what his mother calls ‘the limbo the NDIS holds us all in constantly’ Get our free news app; get ... Read more »

Wisconsin senators issue bipartisan plea to stop politicizing Waukesha killings

darrell brooks Mark Hoffman-Pool/Getty Images Wisconsin Sens. Tammy Baldwin (D) and Ron Johnson (R) issued a joint statement Saturday asking people not to “exploit the tragedy that occurred last Sunday ... Read more »

S.African doctor says patients with Omicron variant have "very mild" symptoms

© Reuters/SIPHIWE SIBEKO South Africa calls British travel ban over new COVID-19 variant ‘Rushed’ By Promit Mukherjee JOHANNESBURG (Reuters) -A South African doctor who was one of the first to ... Read more »

Cincinnati police identify man fatally shot outside Westside Walmart

One man has died after a shooting Saturday afternoon outside of the Walmart Superstore in Westwood, according to Cincinnati Police. At approximately 3:27 p.m., District officers responded to a report ... Read more »

'I wish I'd had the vaccine': Anti-vaxxer vegan's final words to his wife before dying from Covid in hospital... after the 54-year-old refused jab because it had been tested on animals

Vegan who refused Covid jab because it was tested on animals dies of virus Glynn Steel, 54, begged nurses for jab as he fought for his life but it was too lateLast words to wife Emma were: 'I have never felt so ill, I wish I'd had the vaccine' Read more »

Following an incident that involved Jeffrey Tam in ‘Lunch Out Loud,' Cristy Fermin tagged Billy Crawford a ‘bully'

Talk show host and entertainment columnist Cristy Fermin called Lunch Out Loud host Billy Crawford a bully following the incident that involved him and Jeffrey Tam in an episode of ... Read more »

Go rejects removal of Ayungin ship

© The Manila Times Our outpost at Ayungin Shoal: A rusting 1944 LST grounded there in 1999. SEN. Christopher Lawrence “Bong” Go has described as “unacceptable” China’s demand for the ... Read more »

Spain's Canary Islands draw more migrants despite dangers

© Provided by dw.com This boat was found off the Canaries in April with all 24 people on board dead The Senegalese army managed to rescue all 82 migrants on ... Read more »

PICTURE EXCLUSIVE: Jesy Nelson CONFIRMS romance with hunky Emily In Paris star Lucien Laviscount as they share a passionate kiss during romantic rickshaw ride after wild night out in London

The Boyz hitmaker, 30, couldn't keep her hands off her handsome new beau, 29, who shot to fame in Grange Hill in 2007 - with the pair embracing, kissing and staring into one another's eyesJesy, who was most recently linked to her ex Harry James, has previously dated stars including Chris Hughes, Jordan Banjo and Coleen Nolan's son Jake Roche, who she was engaged to Burnley-born Lucien has recently joined Lily Collins drama Emily In Paris as its latest heartthrob for the sexy drama's second seasonAfter starring in an M&S ad aged 10, he forged his acting career in British soaps like Grange Hill, Coronation Street and Waterloo Road, as well as starring in 2011's Celebrity Big Brother Read more »

How dirty is YOUR hairbrush? Grimy TikTok video of woman washing her brush goes viral - leaving followers horrified at the murky sink water

The video, by UK creator @everything_tidy, has more than 3 millions views In it, she soaks her hairbrushes in a sink full of warm water and shampooAfter leaving them to soak for an hour, the water is a filthy brown colourViewer response was mixed, with many pledging to wash their own brushes now Read more »

Video: BBC pundit Carlton Cole sparks outrage by suggesting Manchester City's match against West Ham could 'be a holocaust' live on radio - and he later apologises on Twitter after furious listeners call for him to be sacked 

Read more »

Shido Roxas, nagpasalamat na babae na ang kahalikan sa pelikula

© Provided by PEP.ph GORGY RULA Nagpapasalamat ang aktor na si Shido Roxas dahil babae na ngayon ang nakakahalikan niya sa pelikula. Kasama si Shido sa Metro Manila Film Festival ... Read more »

Ei2 tech inc. workers paid

© The Manila Times All is well for the former workers of Ei2 Tech Inc. as Department of Labor and Employment (DoLE) Secretary Silvestre Bello 3rd (4th from left) witnesses ... Read more »

Später Lucky Punch von Gnonto – Leader FCZ schlägt Meister YB und baut Vorsprung aus

© MICHAEL BUHOLZER/keystone-sda.ch FC Zuerichs Wilfried Gnonto, 3. links, schiesst das erste Tor gegen YBs Torhueter Guillaume Faivre, 2. links, beim Fussballspiel der Super League zwischen dem FC Zuerich und ... Read more »

Vorwürfe gegen Prinz Charles sind «frei erfunden»

© imago images/i Images Prinz Charles bei einem Auftritt in Cambridge. In ihrem Oprah-Interview wurden von Prinz Harry und Herzogin Meghan Rassismusvorwürfe gegen die Royals laut. Der Autor eines neuen ... Read more »

Knapp zwei Drittel der Stimmbevölkerung stimmen Covid-19-Gesetz zu

© KEYSTONE/CHRISTIAN BEUTLER Inmitten einer neuen Corona-Welle stützt die Stimmbevölkerung die Pandemiepolitik des Bundesrats und des Parlaments erneut. Rund 62 Prozent haben ein Ja zum Covid-19-Gesetz in die Urne gelegt. ... Read more »

Zustimmung zum Covid-Gesetz spiegelt ziemlich genau die Impfquote

© Keystone-SDA Die kantonalen Ergebnisse zur Abstimmung über das Covid-Gesetz stimmen ziemlich genau mit den kantonalen Impfquoten überein. Die beiden Stände, die das Gesetz abgelehnt haben – Schwyz und Appenzell ... Read more »

Inside Dani Dyer's snowy getaway as she films secret project in Austria

DANI Dyer has brought fashion to the ski slopes as she films a secret project in Austria. The TV star looked glamorous on her top secret project in a bright ... Read more »

Israel führt wegen Omikron-Variante Handy-Überwachung wieder ein

© Keystone/AP/Ariel Schalit Im Bemühen um eine Eindämmung der neuen Omikron-Variante des Coronavirus führt Israel die umstrittene Handy-Überwachung von Corona-Patienten und deren Kontakten wieder ein. Die israelische Regierung stimmte am ... Read more »

Überraschung! Lindsay Lohan hat sich verlobt

© Jaguar PS/Shutterstock.com Lindsay Lohan will heiraten. Lindsay Lohan hat sich verlobt! Das gab die Schauspielerin via Instagram bekannt – und zeigt stolz ihren Verlobungsring. Grosse Überraschung bei Lindsay Lohan, ... Read more »

Massnahmen-Kritiker verschaffen in Bern ihrem Unmut Luft

© KEYSTONE/ANTHONY ANEX Der grosse Aufmarsch der Corona-Massnahmen-Gegner ist am Sonntag in Bern ausgeblieben. Nach dem klaren Ja zum Covid-19-Gesetz versammelten sich am Nachmittag bloss einige Dutzend Personen auf dem ... Read more »

Neymar wird bei Ramos-Debüt unter Tränen abtransportiert – Messi glänzt mit drei Assists

Neymar vertritt sich gegen Saint-Etienne böse den linken Fuss. Deutschland England Italien Spanien Frankreich Saint-Etienne – PSG 1:3 Paris Saint-Germain bezahlt für den 3:1-Auswärtssieg gegen den Tabellenletzten Saint-Etienne womöglich einen ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic