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What to buy when the consumer is under pressure
It has been a tough time for UK families , with the pandemic and subsequent governmentenforced lockdowns impacting the way we live our lives . Self-isolation , time apart from loved ones and fears over job security have taken their toll . Sadly , despite the easing of restrictions and life starting to return to normal , the shocking events of Russia ’ s invasion of
Ukraine have probably changed the shape of the post-pandemic recovery . While Western Europe is less directly exposed to the current conflict , the impact of the war is likely to be felt through sharply rising commodity prices , especially oil , gas and wheat , which will further exacerbate an inflation problem that started to assert itself last year . UK inflation ( as measured by the consumer price index ) is currently at 7 %, its highest level in 30 years . And while most economists initially deemed it as “ transitory ”, high inflation is now likely to persist , causing a real income squeeze for most UK households . Gas and electricity prices , which increased more than eight-fold and five-fold respectively in 2021 1 , have climbed further in 2022 as a result of Russia ’ s invasion of Ukraine . This will lead to an increase in the UK ’ s energy price cap for approximately 22 million households , with the average energy bill rising by roughly £ 700 from April . 2 As retailers pass on higher raw material and shipping costs to the end consumer , food prices have also
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