Half of Brits worried about inflation
The latest Money Matters Index from the personal finance blog found that more than half (55%) of Brits are worried about how they would cope when faced with a large, unexpected bill, highlighting the financial strain that many are suffering from in the wake of the recent inflation rate hike.
Readers listed items such as food, petrol and clothes as areas that they were particularly anxious about paying for, whilst one in three (36%) readers revealed that inflation will mean they won’t have enough to pay for the basic daily essentials.
Mouthy Money readers also shared their concerns about what inflation meant for their earnings and disposable income, with three quarters (75%) saying they were concerned about the rising cost of living as inflation continues to rise.
Edmund Greaves, co-editor of Mouthy Money, said: “Worries are starting to creep in around the Bank of England rate rises to quell inflation. If you have a mortgage on a tracker rate, or even a credit card, and the Bank of England suddenly shoves the interest rates up, then your monthly payments are going to go up too, it’s as simple as that.”
While lockdown presented the opportunity for some to save more money than they had been able to previously, it seems many people’s financial situations have changed since then. A third (33%) of Brits say they have less money left over at the start of the month than they did before the pandemic.
The Money Matters Index also highlights the fact that finances have become much tighter for the average Brit, with nearly half (48%) of UK adults saying they have become more concerned with how much they earn since the pandemic began. Only 2% said they are less concerned than before.
The data collected also suggests that people are particularly worried about the rising cost of living in the UK as the price of essentials are driven up.
Greaves said: “Along with the anxiety of an unexpected bill popping up on your doorstep, I think, inflation and the general cost of living going up in price is a big, big worry at the moment for all of us and that’s reflected in the research, with up to three quarters (75%) of Brits being concerned about the rising cost of living.”