Feeling the pinch as food and fuel bills continue to spiral upwards

WHETHER you are working or retired, raising a family or running a business, it is impossible to avoid rising costs which have made it increasingly difficult for many to make ends meet.

From farmers who face spiralling prices for essentials such as fertiliser, and schools on tight budgets weighing up cutting the size of pupil meal portions, to those on low incomes unable to pay mounting fuel bills or firms forced to reduce staff as raw material costs soar, it is a difficult time for everybody.

And the real worry is that rising inflation shows little sign of easing any time soon. Earlier this week the Bank of England’s governor warned that price rises in food and fuel would have a much bigger impact than any hike in interest rates, and said the possibility of more rises in food prices was a “major worry”.

Escalating energy bills are the main factor behind the current rise in inflation to 9%, but costs in supermarkets, restaurants and pubs also add to the pressure felt by households. Overall food prices have soared 6.8% – with meat worst hit. Lamb and poultry have showed double-digit rises, according to Retail Price Index figures, alongside dairy products such as butter and milk.

Energy prices feed into rising food bills as farmers and food producers need gas, petrol and electricity to power their businesses and these costs are passed on to consumers. The war in Ukraine, a major producer of wheat, is having a global impact on supplies of this vital grain, both for human consumption and as animal feed.

There was some positive news this week, as UK job vacancies exceeded the figure for the number of people unemployed. But that was something of a silver lining on a darkening storm cloud. While there may be work out there, wages are beginning to lag further and further behind rising prices.

Chancellor Rishi Sunak argues that he cannot “protect people completely” from the cost-of-living squeeze, saying the global challenge of higher energy prices means “countries around the world are dealing with rising inflation”.

But pressure is mounting on the Government to provide a lifeline as the costs crisis worsens. Labour leader Keir Starmer yesterday urged Boris Johnson to impose a windfall tax on oil and gas producers in order to raise billions to cut bills. And while the Opposition’s amendment on the issue was defeated in the Commons, the Prime Minister defended the Government’s existing package of support, adding that “all sensible measures” will be looked at.

From the impact of Covid to the war in Ukraine, seismic shockwaves which have hit global trade look likely to continue – and it appears we will feel the pain in our pockets for some time to come.