Two fifths of UK adults (39%) say they have made cutbacks to their spending as a result of rising prices, according to new research from Canada Life.
Andrew Tully, technical director, Canada Life commented: “Today’s inflation numbers will do little to reassure households across the country who are struggling to come to terms with increased prices and higher bills, despite the Government’s recent proposal to limit energy bills for the next couple of years. It has to be said that the immediate outlook looks bleak, with The Bank of England predicting the peak of inflation to come later this year at around 13%. The peak, when it does come, will offer little respite when the tail of inflation is predicted to last well into next year and not come close to the target of around 2% for several years.
“While UK workers continue to feel the pain as wages lag inflation, there will be some positive news in the coming months for retirees. As inflation marches on, September’s data will determine the living standards for millions of retirees across the UK for the coming year, and it is highly likely the state pension is on track to increase by a record amount in April 2023.”
As the cost of living crisis continues to take its toll, new research from Canada Life reveals two fifths of UK adults (39%) say they have made cutbacks to their spending as a result of rising prices, with 37% worried about their own, or their household finances, and 31% already feeling the squeeze on their financial situation.
Andrew Tully comments: “People are clearly making cutbacks where they can and many are worried about their household finances. Unfortunately the worst is yet to come unless we see further significant interventions from the government in the coming weeks.”
|
