The cost of living in the UK soars despite economic policies to reduce inflation
UK’s citizens are groaning over the high cost of living. This can be traced to the lockdown activated by the UK authorities to limit the spread of COVID-19.
UK’s cost of living experiences unexpected surge
Rates of services and products have surged in Britain, even with the COVID-19 curbs which forced certain shops to shut down. The consumer rates index inflation increased to 0.7%, from 0.4% in December.
This will mean that non-essential services prices are affected, according to the office of National Statistics. A lot of citizens raced to escape Christmas lock downs which forced prices of most services to increase.
Although this price hike was expected, it was higher than what economic experts forecasted. About inflation. Inflation is how prices of goods and services increase due to several factors. Inflation affects all sectors, which includes Housing shopping and transportation services.
It is a key economic concept that measures financial stability and consumers’ well-being according to Jonathan Athow clothing rates increase because of inflation in the UK in December, even with discounts.
“ Despite these Increases on non-essential goods, food rates decreases, especially Vegetables and meat”
Financial analysts opined that it is normal for the cost of flights and transportation to increase due to few people traveling, however, it is higher than envisaged.
Transportation and electronics rates increases
Even with various transportation restrictions in most of the UK in December, prices of fares still increased between October to December. Although it has to be noted, these prices could reduce when the movement restrictions are lifted and citizens travel more.
Prices of home electronics like Game devices and kids games also aided the increase in December. The only cheap commodities are food and alcohol according to ONS.