Why is the Cost of Living Rising So Much?

Jacob Greene
Published Dec 16, 2024


The cost of living is rising, and it is becoming increasingly difficult for people to maintain their standard of living. Throughout winter, gas prices have been climbing, while supermarket prices have also been rising. For millions of Britons, the 'eat or heat' decision has become increasingly difficult. With a rise in fuel prices, some families will be forced to choose between food and heating. But what can we do to combat this rising cost of living?Several studies have shown that a growing number of people are struggling to meet their basic needs, such as food, fuel, and housing. Moreover, the cost of living is disproportionately high among younger people. This is because housing demand has outpaced supply, and rent has been rising faster than inflation. While people who own their homes are protected by rising prices, those who don't are forced to pay more to rent their homes.The cost of living has continued to rise despite the recent recovery from the last two crises. The cost of medical care has jumped by over four percent since 2015, while the price of non-discretionary goods rose by 4.5 percent. Meanwhile, wages have only increased 2.4%, reducing the purchasing power of most households. In other words, the cost of everyday items is increasing at an unsustainable rate.This crisis is affecting the poorest households the hardest. The government is refusing to increase benefits and universal credit, putting unprecedented pressure on the poorest households. Rishi Sunak blamed the conflict in Ukraine for the cost of living crisis. Although oil prices have fallen, demand has rocketed, pushing prices up. Prices of gasoline and gas have increased significantly. With gas costs increasing, household energy bills have also gone up.

Related Articles

How Economic Policies and Inflation Are Reshaping the Housing Market...

Mortgage rates remain high, with the 30-year fixed rate at around 7%, up from 6.08% in September. The Federal Reserve’s decision to keep its benchmark rate steady—due to persistent inflatio...

Holiday Spending Stays Strong Despite Inflation...

Holiday shoppers are proving resilient this year, with consumer spending projected to rise by 3.3%, according to economist Lauren Saidel-Baker. Despite inflation concerns, retailers have extended sales periods, with promot...

Inflation in Focus: How Americans Can Navigate Financial Uncertainty...

Inflation remains a topic of concern for Americans, as recent insights from the Federal Reserve highlight potential vulnerabilities to future cost increases. Read: Government Income Programs to He...

How Trump’s Presidency Could Impact Grocery Prices in 2025...

With Donald Trump’s recent election win, many Americans are curious about potential changes to grocery prices, which have been rising steadily. Food costs have increased by 22% over the past four years a...

Inflation Is Easing: Here's How You Can Save More Money and Maximize Government Benefits...

Inflation in the U.S. has been a major concern for the past few years, affecting everything from grocery bills to gas prices. But the good news? According to experts, inflation has ...

Where Prices Are Dropping: Groceries, Used Cars, and More as Inflation Slows...

Good news for your wallet – inflation is finally showing signs of easing up, and some everyday items are starting to get cheaper. While rising prices have been a strain for many household...

Stay ahead of the curve

Equip yourself with the knowledge to tackle inflation head-on, and access exclusive resources designed to help you thrive despite economic challenges.
Get Started