A wave of concern over the skyrocketing cost of living is sweeping through Britain, new figures released today reveal.
More than half of households fear the cost of living crisis will affect their standard of living this year, according to a study by TSB bank.
Almost one in three Britons fear their finances will deteriorate in the coming year.
However, soaring inflation is already hitting household finances, with more than eight in ten people already experiencing an increase in their cost of living.
Inflation has reached historically high levels, driven upward by an energy crisis in Europe which is inflating household energy bills.
Prices are 5.1% higher than they were around this time last year, the highest rate of increase in more than a decade, according to the Office for National Statistics.
The cost of living is expected to rise even more over the next few months, peaking at at least 6% in April, triggered by the energy regulator, Ofgem, raising the price cap by around 40%.
The Resolution Foundation’s economic think tank estimates that the average UK household will experience Â£ 1,200 on their annual bills in 2022.
Inflation is not just about rising energy prices. Figures released yesterday by the British Retail Consortium show food prices are up 2.4% from a year ago, just the second time they have risen in more than two years.
Households must turn to risky financial products to fill gaps in their spending commitments caused by rising prices, TSB found.
Use of buy now and pay later services, such as Klarna and Clearpay, has increased by 59% over the past year.
Mark Curran, Director of Client Banking Services at TSB, said: âIt is clear that many people are concerned about the impact of rising bills and inflation. “