How to Save Money as Inflation Rises

As inflation continues to rise, putting pressure on household budgets, we show you how to save money by comparing products online.

March's Retail Price Index (RPI) on household items revealed that inflation is up 4.4% and figures released from Nationwide reveal that house price inflation is now over 10 per cent, putting an increased strain on household finances.
April data from Markit/YouGov suggested that household finances deteriorated at the fastest pace for four months. Almost 29% of respondents indicated a worsening of their household finances since March, compared to 8% that reported an improvement.

Households meanwhile paid down debt for the third month running in April. However, respondents in the youngest age group (18-24) took on more debt to thereby contrast with the national trend, as has been the case throughout much of the survey history.

Spending levels increased in April and at a faster pace than in the previous month, although this may have been boosted by Easter time expenditure.

“Higher unemployment and rising inflation perceptions could present a threat to the consumer recovery, and this unwelcome prospect will need to be monitored closely by policymakers in the coming months,” said Tim Moore, Economist at Markit.

How to Save Money: Compare Prices Online

As prices continue to rise for everyday items such as petrol and utility bills, it is increasingly important that to keep household expenditure to a minimum that you regularly review what you are paying on items such as car insurance, gas and electricity bills, credit card and life insurance.

You should look at ways to manage your debts using several debt management tools available online. Also one of the easiest ways to cut your debt is to switch your credit card to a new one on a more favourable rate, to do this; review the best balance transfer credit cards.

Other ways to keep down your monthly outgoings are to regularly review items such as car insurance; compare car insurance to ensure you are getting the best deal.

The same is true of energy prices for gas and electricity as changes to available tariffs continuously mean that you should compare energy prices now to get the best deal available on gas and electricity.