The recent cost of living crisis has led to painful choices for many households facing soaring food and energy prices.
In addition, the higher interest rates deployed to tackle rising prices have caused problems for many mortgage holders, tenants and businesses.
But recent figures showed pay rises are now matching the cost of living, and interest rates are on hold for now.
But recent figures showed pay rises are now matching the cost of living, and interest rates are on hold for now.
Although many will be hoping the current squeeze on finances is coming to an end, there are several reasons why some may yet be worse off.
Workers’ attempts to get pay rises that match outgoings have been helped by employers anxious to attract and keep staff in the face of skills shortages. But that’s changing. As higher interest rates add to the pressure on businesses, more than 200,000 jobs were shed between May and July.
The rise in unemployment so far has been relatively modest, but it’s gathered momentum and will probably increase further. There is always a lag between interest rates changes and bosses making hiring decisions.
Already, surveys show new pay deals moderating in recent weeks, also reflecting expectations – voiced by the Bank of England, the Treasury and independent economists – that inflation, which measures how prices change over time, will carry on falling.
The recent cost of living crisis has led to painful choices for many households facing soaring food and energy prices.
But recent figures showed pay rises are now matching the cost of living, and interest rates are on hold for now.
In addition, the higher interest rates deployed to tackle rising prices have caused problems for many mortgage holders, tenants and businesses.
Although many will be hoping the current squeeze on finances is coming to an end, there are several reasons why some may yet be worse off.
But recent figures showed pay rises are now matching the cost of living, and interest rates are on hold for now.
But recent figures showed pay rises are now matching the cost of living, and interest rates are on hold for now.
Although many will be hoping the current squeeze on finances is coming to an end, there are several reasons why some may yet be worse off.
Workers’ attempts to get pay rises that match outgoings have been helped by employers anxious to attract and keep staff in the face of skills shortages. But that’s changing. As higher interest rates add to the pressure on businesses, more than 200,000 jobs were shed between May and July.
The rise in unemployment so far has been relatively modest, but it’s gathered momentum and will probably increase further. There is always a lag between interest rates changes and bosses making hiring decisions.
Already, surveys show new pay deals moderating in recent weeks, also reflecting expectations – voiced by the Bank of England, the Treasury and independent economists – that inflation, which measures how prices change over time, will carry on falling.
#Inflation #falls #worse #households
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