Average families will spend ‘£1,700 more on household costs’ in 2022

The typical Brit family will be spending £1,700 more per year on household costs in 2022, says a new research today.

As per a study by the Centre for Economics and Business Research (CEBR), conducted for BBC Paronama, inflation rate is projected to rise by 4.6 per cent by Christmas, mainly owing to higher fuel and energy prices.

The study also added that most of the rise in costs is being contained by retailers as for now and is not yet being passed on to customers since they are trying to keep prices constant over the festive period.

Andrew Selley, chief executive of Bidfoods, one of the UK’s biggest food distributors, admitted to BBC that they are facing “a very challenging set of circumstances”.

Compared with December 2020, the typical UK family of two adults and two children is predicted to spend £33.60 more per week, due to inflation, adding up to £1,700 per year.

The forecast made by CBER is based on the prices of commonly bought items, including food and drink, clothing and household goods. It also includes spending on utility bills, such as fuel and power, transport costs, and money spent on recreation and days out.

It assumes that spending patterns will remain the same as in previous years and that inflation will remain at the projected 4.6 per cent (up from the current 4.2 per cent). The inflation is expected to rise higher in spring 2022, putting further pressure on household spending.

As per Panorama and CEBR, average cost of margarine will leap by more than 15 per cent, lamb by 8.5 per cent and butter by 6.4 per cent.

The price rise has been attributed to higher energy prices, shortage of some goods leading to disruption in supply chain, end of government’s pandemic-support to businesses and shortage of workers- also compounded by Brexit.