What can households do to reduce the pressure of rising inflation?

The rise comes amid record petrol prices and rising food prices.

Data from the Office for National Statistics showed a 9% increase in May-April, as measured by the Consumer Price Index.

At a new high, headline inflation has reached a level not seen since February 1982, putting pressure on households amid the cost of living.

There are some simple ways that people can reduce their financial stress.

Here are some simple steps you can take to begin the process of preparation for mediation.

Create a budget

Budgeting can help keep your finances on track.

One of the best ways to deal with inflation is to set budgets to help you with your expenses and see where you can reduce them.

Sarah Coles, a personal finance analyst at Hargreaves Lansdown, said: “With inflation so high, we need to be careful that rising prices do not push us to spend more.

“The best way to get started is to set budgets and work on the most sensible ways to reduce it.

“Reducing costs can be as easy as shopping for a better deal on everything from media packages to groceries and insurance.

“However, if you have already taken simple steps, it may mean removing some of the comforts that you do not really value.

Check direct debit and unnecessary fees.

Some users have doubled their direct debit (PA)

/ PA Wire

Another tip is to check your direct debit. Coles said: “This is a good place to start examining what is hidden in your regular live debit.

“It’s just that it doesn’t do the trick. You need to consider more difficult lifestyle changes to keep costs down.”

It is also helpful to check other unnecessary fees such as credit card fees.

Review Savings Accounts

Rachel Springall, a financial expert at Moneyfacts.co.uk, said: “Since interest rates and inflation were particularly volatile in 2021, it would be understandable if many savers had a longer fixed term. Feeling we have ‘Run out of gas’ emotionally.

“Instead, savers will be wise to make sure they are getting the best possible return on their cash savings account that suits their needs, and if they are getting a bad deal. Switch. “

Stock market investing

For those who have more cash, another thing to consider is stock market investing.

Coles suggested that when people want to keep emergency savings in their pockets, they can easily access them, so those who have more cash should consider long-term.

“You don’t need five to 10 years or more to make money, you can consider investing in the stock market,” he said.

“The value of your investment will go up and down in the short term, but in the long run you have to be able to get out of it and your investment has a better chance of surpassing inflation which is in savings accounts. Is.”

Get support through Citizen Advice or other channels.

Rising inflation affects people in a variety of ways, but can be especially difficult for the elderly, who depend on their pensions.

Kate Smith, Senior Benefits Expert at Citizen Advice, said: “One of the most important things to do if you are having a difficult time is to make sure you are getting the help you deserve. ۔

“And remember that if you are struggling this January, civic advice can help you with whatever you are and whatever your problem is.”

Becky O’Connor, head of pensions and savings at Interactive Investors, said: “A large portion of low-income households are pensioners. UK age It is estimated that more than 2 million pensioners in the UK live in poverty.

He continued: “The imbalance between the increase in state pensions and inflation, which is likely to increase further by April, will provoke further demand. Government Consider a more generous operating system that accurately reflects the difficulty that many older people face.

“We have seen from other ONS (Office for National Statistics) data released this week that the number of elderly people working on epidemics has dropped significantly since you were in your 60’s. However, finding work is not an easy task – the group survives only on its pension, which is uncertain in the face of rising inflation. “

Ms O’Connor added: “It’s really important for older people who are struggling to see if they are entitled to any benefits they are not currently claiming, such as Pension credit and any other concessions targeted to their age group.

“The private pension vessels they are trying to manage with may consider allocating a higher proportion of equity with a chance to beat inflation.

“Older people who have started drawing from their pensions but are still working and able to contribute will still benefit from tax relief on contributions up to £ 4,000 a year.”