Households worried about prices rising faster than wages

The rising cost of living remains the biggest worry for many UK households right now.

According to the British Retail Consortium (BRC), more than half (57%) of people are worried about prices rising faster than wages.

That put it ahead of other concerns, such as the possibility of tax increases (49%) and unemployment (26%).

Inflation remains at 3.8%

It’s easy to see why increasing living costs are weighing heavily on people’s minds at the moment.

Inflation is currently at 3.8% - almost double the Bank of England’s target of 2%.

And food prices are going up even faster, with food inflation hitting 5.1% in the year to August.

That’s the fifth month in a row in which this figure has gone up.

Government urged not to increase costs for retailers

Ahead of November’s Budget, the BRC has now called on the government not to hit retailers with higher business rates or new taxes.

Otherwise, it believes food prices will stay higher for longer and add to the pressure on people’s finances.

“The government risks losing the battle against inflation and working families are understandably worried,” said Helen Dickinson, chief executive of the BRC.

“With many people barely recovering from the last cost-of-living crisis, the chancellor will want to protect households and enable retailers to continue doing everything they can to hold back prices.”

Help is available

If you’re struggling to keep up with your regular expenses, there are practical steps you can take.

Check your benefits

You might be eligible for financial support from the government, so use our benefits calculator to see what help you could get. 

Create a household budget

Look at how much money you have coming in and where it’s going.

You’ll then be able to see where savings can be made and free up cash for essential costs, such as rent, mortgage payments and household bills.

Check our guide on how to create a budget to get started.

Tackle problem debts

If you’re dealing with debt, then get in touch for confidential, practical and impartial debt advice, and we can talk about what options are open to you.