Money Matters: Inflation is rising again – what it means for your money and how to stay in control
You may have seen in the news that inflation is starting to rise again. It’s one of those terms that gets used a lot – but what does it actually mean for you and your household budget?
In this week’s Money Matters column, Dan Bebbington, Housing Plus Group’s debt and energy manager, gives us an explainer, as well as some advice on what you can do to stay on top of things.
In simple terms, inflation measures how much prices are rising over time. So when inflation increases, it means everyday costs – such as food, fuel and travel – go up.
UK inflation rose to 3.3% in March, largely driven by the Iran war triggering the biggest jump in fuel prices for more than three years. While that might sound like just a number, the real impact is being felt in our weekly food shops, travel to work and overall cost of living.
You might have noticed that some bills like energy have dropped slightly this month but at the same time, other costs such as petrol and food are increasing again.
For many of us, this feels like one step forward and two steps back because when inflation increases, your money doesn’t go as far as it used to, and everyday essentials become harder to afford and this means it can be more difficult to keep on top of your bills and other outgoings.
There are some simple steps we can all take to help stay in control, such as reviewing your budget regularly as prices can change quickly, so it’s worth checking yours on a monthly basis.
By keeping an eye on your budget and in turn, rising costs, it will help you to plan ahead – for example, if you notice your food shop or travel costs creeping up, try meal planning and shopping with a list or even combining your household journeys where possible.
Rising costs can feel worrying, especially when things seem to change so quickly – so it’s important not to struggle in silence. Speaking to someone early can help prevent things from becoming more difficult.
Free, confidential money advice is available through a number of organisations including Citizens Advice, the Money Advice Trust and the Money Helper service.
While, our Money and Debt Advice team are also here to help our customers with energy checks, managing debt, benefit checks and support with budgeting.
