The Consumer Prices Index (CPI) rose by 9.1 percent in the year to May 2022, up from 9.0 percent in April, revealed figures released today by the Office for National Statistics (ONS). As a result, experts have warned more Britons are beginning to “feel the squeeze on their bank accounts”.
How does inflation impact you?
Inflation is important for individuals because it determines how far your money will go.
For instance, if inflation was two percent for the cost of a litre of petrol, motorists will need to spend two percent more than 12 months earlier.
If wages do not rise in tandem with inflation, your purchasing power and ultimately your standard of living are likely to fall.
Things like grocery prices can increase, meaning you get less for the amount of money you spend.
Analysts Kantar have suggested annual grocery prices will be hiked by £380 this year due to rising prices.
That is an increase of £100 since April alone.
Inflation rises can also be linked to the energy price cap rise, which is set to soar once again towards the end of the year.
According to Cornwall Insight, energy prices are expected to skyrocket to a staggering average annual bill of £2,980 this October at the next price cap increment.
