Inflation rise casts a winter chill on household finances

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."