Inflation rise casts a winter chill on household finances

18 December 2024

1 min read

Sarah Pennells, Consumer Finance Specialist at Royal London, comments:

"Although today’s rise in inflation was expected, any increase is not the news consumers will have been hoping for. Inflation isn’t rising at the rates we saw in 2022 and 2023, but the three plus years of higher prices and bills is taking its toll on consumers' finances.

"Our cost of living research shows that rebuilding financial resilience is taking time, with almost one in ten UK adults saying they couldn’t afford an unexpected bill of any size from their income or savings and one in five saying they could only afford an unexpected bill of up to £250. Christmas is the most expensive time of year for many households, and the start of the year sees higher bills – from credit cards to energy.

"Our research also shows that over eight in ten UK adults are worried about rises in the cost of energy and food, and one in five are regularly overdrawn at the end of the month or have to dip into the red from time to time. Rising inflation will make it even harder for those already finding it a challenge to afford the essentials and to get their finances back on track."

For further information please contact:

Nicki Parry, PR Manager

Email: nicki.parry@royallondon.com
Mob: 07919 170 043

About Royal London

Royal London is the UK's largest customer-owned life, pensions, and investment company, and one of the top 30 mutuals globally*. With over 160 years of heritage and no external shareholders, we're able to take a long-term view, focusing on supporting better outcomes for our customers.

Today, Royal London looks after 8.4 million life and pension policies, with £212 billion of assets under management and over 5,000 colleagues**. In 2026, we shared £199 million of our profits with approximately 2.4 million eligible customers.

We invest in partnerships that reflect our values, including being the only Founding Partner of the first British & Irish Lions Women's Team, supporting women's and girls' rugby across grassroots and elite levels to help develop the next generation of players and coaches. All driven by our commitment to doing what's right for our customers.

Royal London works for you.

Discover more at royallondon.com.

*Based on total 2024 premium income. International Cooperative and Mutual Insurance Federation Global data, 2026.

**Figures quoted are as at 30 June 2026.

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