Rising energy and food costs have more bearing on the inflation rate experienced by low-income households, as a greater proportion of their expenditure is spent on them compared with high-income households. Tell us what you spend your money on to see how this affects your inflation rate. The questions asked on how easy or difficult it was to afford recent energy bills and housing costs cover the latest period. More recent data from the OPN suggest the current ability to save is worsening for low-income groups relative to high-income groups. Figure 5 shows the annual rates of price growth experienced by each tenure type between November 2017 and October 2022, compared with the overall CPIH and CPI annual growth rate. Putting these two elements together, households who recently have taken out a new mortgage, or prospective homebuyers are often taking on larger mortgages and paying more in interest each month. London's annual percentage change in private rental prices was 4.0% in the 12 months to December 2022, which means that London is no longer the English region with the lowest annual percentage change. It measures the change in the prices of the goods and services as consumed by households. Nurses, rail workers, ambulance drivers, teachers and civil servants have all gone on strike this month alone. While actual rental prices cannot currently be published in the IPHRP because of data access constraints, we are actively working to acquire the necessary data. Our previous analysis shows the extent to which those on lower incomes may be disproportionally affected by rising energy prices. All rights reserved. Since November 2021, the average floating mortgage interest rate has increased by 0.2 percentage points. ". According to the Chartered Institute of Personnel and Development (CIPD), the average private sector worker in the UK is set to pocket a 2.5% pay rise in 2022. Average UK worker thinks 9% pay rise is fair for 2023 There are also a number of challenges that come from the data sources that we have available for us to calculate the expenditure shares. Global food prices have risen since Russias invasion of Ukraine in February 2022. Property renters are more concentrated in the lower income quintiles than mortgagors and have the potential to be affected more by changes in their cost of living. Rate of 10.1% in March is higher than expected and increases chances of more BoE tightening. It follows on from our Impact of increased cost of living on adults across Great Britain: November 2021 to March 2022 article, which analyses the main characteristics associated with people who are more likely to report an increase in their cost of living and those most at risk of not being able to afford an unexpected expense. This has resulted in our initial timetable being out of date. Latest pay award findings: Cost-of-Living Increase and Other Determinations for 2022 Consumer Prices Index including owner occupiers housing costs (CPIH) annual inflation was 10.5% for low-income households (those in the second income decile) and 9.1% for high-income households (those in the ninth income decile) in the year to October 2022, compared with an all-households rate of 9.6%. The IPHRP is released as Experimental Statistics, and is subject to revisions if improvements in the methodology are identified. The data in this article relate to the period in which there was a 12% rise in the Office of Gas and Electricity Markets (Ofgem) energy price cap. Public service pensions increase: 2023 - GOV.UK Consumer Prices Index (CPI) annual inflation was 11.9% for low-income households (those in the second income decile) and 10.5% for high-income households (those in the ninth income decile) in the year to October 2022, compared with an all-households rate of 11.1%. However, because the consumption baskets of specific households differ and prices do not all change at the same rate, the price experience of different groups of households may differ from the average figure for all households. The trends in the differences in the inflation rates between subsidised renters and private renters can be explained more clearly by looking at the differences in the contributions to the 12- month growth rate. This was a smaller increase (4 percentage points) from November 2021 (3 to 14 November 2021) than those living in the most deprived areas. In the most recent Opinions and Lifestyle Survey (OPN) data (16 to 27 March 2022), 87% of adults reported their cost of living had increased compared with 62% in November (3 to 14 November 2021). These are a set of new experimental measures that aim to show how different types of households experience inflation. Our previous analysis shows that restrictions on recreational spending and behavioural changes contributed to lower spending in FYE 2021. In March 2022, low and high-income households saw similar rates of inflation, since then the gap has widened. The 5% pay rise expectation was the highest since at least 2012, when the quarterly survey started, the CIPD said. Disposable income is income that is available for consumption and is equal to all income from wages and salaries, self-employment, private pensions and investments, plus cash benefits less direct taxes. The difference is increasing. This increased from 28% (15 December 2021 to 3 January 2022) to 45% (16 to 27 March 2022). The line shows the overall difference in the 12-month growth rate between subsidised renters and private renters. These fees are Despite around 30% of those paying off a mortgage or rent reporting difficulty to afford housing costs, only 3% of adults claimed to be behind on rent or mortgage payments (16 to 27 March 2022), with less than 1% of mortgagors reporting mortgage arrears. You can change your cookie settings at any time. The cost of living, current and upcoming work: March 2022 Article | Released 2 March 2022 A summary of ONS's current and future analytical work related to the cost of living. One cabinet minister said the government. Since December 2021 (15 December 2021 to 3 January 2022) the most common reported action following an increase in the cost of living was spending less on non-essentials. Throughout 2022, the average salary rose by nearly 3 a month. Energy includes electricity, gas and other fuels for both CPIH and CPI. These categories account for around 20.7% of expenditure for owner-occupiers as opposed to 14.6% for renters. Private rental prices development plan, UK: updated February 2022 Article | Released 8 February 2022 Overview of our plans for the statistical development of rental prices statistics, including a timeline for development. "30k now, is not the same as it was three years ago," said chief executive Chris Stringer told the BBC. Private rental prices paid by tenants in the UK increased by 4.2% in the 12 months to December 2022, representing the largest annual percentage change since this UK series began in January 2016. Both of these figures reflect the highest annual percentage change since this England series began in January 2006. "Wages for new hires and workers in blue-collar and manual services jobs will grow faster than average." Dive Insight: However, for analytical purposes we have also produced democratically weighted inflation rates for each household group. The difference between these measures is because of. Despite reported increases in the cost of living, this measure has remained relatively stable since November 2021 (3 to 14 November 2021).