EXPLAINED BY YOUNG PEOPLE FOR YOUNG PEOPLE šØāšš©āš
What exactly is Inflation?
Inflation is a measure of the increase of cost for everyday goods over a period of time, in other words, it tells us how fast things are rising year-on-year.
š§Buttery Prices
For example, as a result of inflation, the average price of a 500g pack of Lurpak butter increased by 33% compared with the same time last year, according to Trolley.co.uk
Why is inflation in the UK so high right now?
TWO REASONS WHY;
Inflation has been driven by the rising costs of fuel and energy bills (with average gas and electricity prices up by 53.5% and 95.5% respectively compared to a year ago),
And the ongoing Russia-Ukraine war, disrupting Russia's oil and gas demand and supply has had a global impact on energy prices.
Why does it matter?
Inflation is currently at 9.1% and as you can see below, it has pushed even the price of butter to eye-watering prices.
Inflation has had the same impact on peoples wages/salaries, as the average pay has not been able to rise at the same rate as inflation, resulting in most peoples regular pay falling by at least 1.2% compared to a year ago.
This has impacted peoples spending choices, especially young people who have had to cut back on their food shop and other essentials.
It's the first time Gen Z have had to battle soaring inflation and the government has failed to prioritise young people with their support packages.
For more on inflation and the cost of living crisis, also check out our #COLC 5min read from our analyst Anfel here
Inflation And The Price Of Butter & Our Inflation Tracker š
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