ONS - Office for National Statistics
ONS - Office for National Statistics
03/10/2023 | Press release | Distributed by Public on 03/10/2023 03:53
Cost of living latest insights (Latest release)
Overview
The cost of living has been rising in recent months in the UK and across the world.
Food and energy prices have been rising markedly over the past year, particularly gas prices, largely in response to the conflict in Ukraine. Global recovery from the coronavirus (COVID-19) pandemic is putting further pressure on prices.
In the UK, the price of consumer goods and services rose at the fastest rate in four decades in the year to October 2022. The annual inflation rate reached a 40-year high of 9.6% but has since eased to 8.8% in the year to January 2023.
Spending: Almost a quarter of adults borrowing more money or using more credit
Almost a quarter (23%) of adults in Great Britain are borrowing more money or using more credit, according to the latest Opinions and Lifestyle Survey.
In response to the rising cost of living, two-thirds (66%) of adults reported they are spending less on non-essentials.
Adults who report borrowing more money or using more credit compared to a year ago because of the increased cost of living are twice as likely to report low happiness, compared with those who are not borrowing more money, according to data from the Opinions and Lifestyle Survey from 14 September 2022 to 8 January 2023.
Spending on credit and debit cards increased in February 2023, following typical seasonal patterns.
Housing: One in three adults finding mortgage or rent payments difficult
According to the latest Opinions and Lifestyle Survey, around one in three adults (32%) are finding it difficult to afford rent or mortgage payments.
This was according to those asked between 22 February and 5 March 2023.
The monthly cost of a new mortgage has risen by 61% in the year to December 2022 for an average semi-detached house in the UK.
Monthly repayments on newly issued mortgages have increased sharply over the past year because of rising interest rates increasing the cost of borrowing, as well as rising house prices.
You can use our new Mortgage Calculator tool to see how mortgage repayment costs have changed around the country and enter your own inputs to personalise estimates for where you live.
Private rental prices continued to grow at record high rates in all UK countries in the year to January 2023.
Energy: Gas prices rose 129.4% in the year to January 2023
Gas and electricity prices continue to rise rapidly compared with last year, and most adults in Great Britain are reporting using less fuel in their homes because of the rising cost of living.
Gas prices in the UK rose by 129.4%, and electricity prices by 66.7%, in the 12 months to January 2023, and were some of the main drivers of the annual inflation rate.
As energy prices continue to rise, just under half (48%) of adults who pay energy bills said they found it very or somewhat difficult to afford them, when surveyed between 22 February and 5 March 2023.