General Insurance Article - Inflation hammer blow leaves households reeling

 Andrew Tully, technical director, Canada Life commented: “The inflation numbers are a further hammer blow to households right across the UK, who will be left reeling from the continuing surge in prices for everyday items. Economists predict the peak of inflation will arrive later in the year, so the bad news will only get worse. And yet, the peak, when it does come, may offer little respite. With wages officially lagging way behind the cost of living, how long inflation remains high will determine our living standards for years to come. This is the issue the Bank of England will grapple with as it signals bigger interest rate hikes are on the horizon as it navigates the choppy waters that lay ahead.”

 As the cost of living crisis continues to take its toll, new research(2) from Canada Life reveals a third (31%) of UK adults feel their financial situation will get worse in the next 12 months. This comes at a time when just two fifths (38%) feel their finances are in a good state.

 The research also found that people are concerned about the state of the economy, with nearly half (48%) think the UK economy will get worse in the next 12 months, and 43% think the global economy will get worse.

 (1) Source: Based on the latest ONS family spending patterns released 18th July 2022.
 (2) Source and methodology: a sample of 2,000 UK adults aged 18+, with fieldwork by Opinium between the 14th and 19th April 2022.

 Results were weighted to nationally representative criteria.