At 2.3%, inflation is nowhere near the 10% peak in the wake of Russia's full invasion of Ukraine, but it is creeping up and could hit 3% next year, say forecasters. Here are some of the pressures households are likely to face in the coming months.
Energy prices
Ofgem announced its latest price cap yesterday morning, with prices set to rise by 1.2% from January, to £1,738 a year for an average household. The forecaster Cornwall Insight reckons the cap is likely to come back down in April, by a modest 1.4% - but that will make little difference for households struggling this winter.
Mindful of the anger over the abolition of the winter fuel payment for most pensioners, ministers have persuaded the energy sector to set aside £500m for the next few months, to cushion the blow for some of the hardest-hit households - including by writing off debts for some. But Citizens Advice, which advises cash-strapped consumers, pointed out that total energy debt owed by households to their suppliers is now £3.7bn - and called for direct support from ministers. "Without government action, millions are at risk of being left in the cold this winter and beyond," said its head of energy policy, Alex Belsham-Harris. Even comfortably off consumers may well note that while utility bills are no longer rocketing, they remain a good 40% higher than the £1,200 a year or so seen before the Ukraine war.
And with geopolitical uncertainty high, as Donald Trump prepares to arrive in the White House, energy prices are not expected to return to the pre-war normal levels any time soon.
Housing costs
The cost of new fixed-rate mortgage deals has been creeping up in recent weeks, and the bigger-than-expected rise in inflation in October fuelled expectations that lenders will continue to raise rates.
Bu hikaye The Guardian dergisinin November 23, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye The Guardian dergisinin November 23, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Money hacks How to save on winter sports holidays
When it comes to skiing and snowboarding, going to Europe will always be cheaper than flying to somewhere such as the US or Canada - but costs vary massively on the continent.
Scam refund claims
Some victims of bank transfer scams will not get a penny back despite beefed-up rules designed to better protect consumers from fraudsters because several big banks have introduced an excess on refund claims.
Packaged accounts Are the perks worth the money?
For a monthly fee, banks offer everyday banking with all kinds of enticing extras. Laura Whateley examines how the 'freebies' stack up
Spain floods force firms to look south for oranges
Some British retailers and wholesalers have been forced to switch to sourcing oranges from South Africa and South America earlier than usual after last month's floods in eastern Spain left farmers struggling to harvest and ship their crops.
Northvolt boss resigns after EV battery firm files for bankruptcy
The chief executive of Northvolt has resigned after the Swedish battery startup filed for bankruptcy protection in the US.
Electric dream sours Carmakers fight strict EV rules as fines loom
When Ford announced this week that it was cutting 800 jobs in the UK, the US carmaker had stern words for the government.
Irish tycoon bids to buy out Yorkshire Post owner
National World, the owner of the Scotsman and Yorkshire Post - and underbidder in the auction for the Telegraph - has received a buyout proposal from largest shareholder.
Bitcoin rises after US SEC chair says he will step down
Cryptocurrencies rose sharply immediately after one of the industry's biggest critics, Gary Gensler, said he would stand down as the head of the US financial regulator when president-elect Donald Trump was inaugurated in January.
Feeling the strain Rising bills and Trump policies to add to pressure on households
Labour swept to power in the wake of a punishing cost of living crisis that hit households hard, with the price of food and energy rocketing, alongside the impact on mortgage rates of Liz Truss's disastrous mini-budget.
Budget blamed for end to 12 months of expansion as optimism slumps
Labour's first budget in 14 years has been given the \"thumbs down\" by private sector businesses, with Rachel Reeves's measures blamed for the end to a 12-month run of expansion and a fall in retail sales.
