The cost of living crisis

It's predicting inflation could soar above 18% by the start of next year - pushed up by the spiralling cost of energy.

Ofgem are to announce the October price cap later this week.

Household bills are likely to hit more than £3,500, and by next April they could be closer to £6,000.

No surprise then, that ordinary people - unlike politicians, aren't waiting around to take action - they're already changing their way of life to save money.

Eating sandwiches rather than proper meals. Using the microwave instead of the oven - or simply choosing tins over fresh food to avoid any cooking whatsoever.

Europe has been facing the ripple effects of Russian invasion of Ukraine and the energy prices are on the rise. Price of heating systems have surged drastically in Hungary and Hungarian camera technician forced to live in a yurt.

London is witnessing huge protests against rising energy bills and the cost of living despite the promises of the new UK government. The prices refuse to come down and the anger is now boiling.

A national strike in France on Tuesday has seen trains canceled and schools closed as trade unions demand higher salaries for workers amid soaring inflation and an energy crisis.

According to one of the country's largest trade unions, CGT, the protesters are calling for “an increase in wages, pensions and social minimum, and the improvement of living and study conditions.”

CGT explained in a statement that today’s industrial action is an extension of the weeks-long refinery strike that has closed gas stations across the country. The trade union accused management of oil giants – Total and Exxon in particular – of “making huge profits” while ignoring the demands of employees hit by the cost-of-living crisis.

As the protest movement is picking up steam not only in the energy industry but across “both public and private sectors,” the union said that now is the time for “employees, retirees, the unemployed and young people” to join the industrial action.

France’s inflation rate currently exceeds 6%, while almost all of the country’s industrial sectors have recorded a drop in activity due to the burgeoning energy crisis, which has been exacerbated by anti-Russia sanctions and the sharp decrease in Russian energy supplies.

Industry stalls amid energy crisis – Bank of FranceREAD MORE: Industry stalls amid energy crisis – Bank of France
The strike, which is supported by several large unions, has led to massive disruptions. SNCF, the national state-owned railway company, issued a warning that traffic would be disrupted “on several lines.”

The Eurostar rail service announced that it had to cancel certain trains between London and Paris due to the work stoppage.

Maritime transport could also be impacted, as several ports and docks announced that they would cease working for several hours on Tuesday.

The strike has forced some schools to close as the first official figures from the Education Ministry show that about 6% of teachers are participating in the action. The number is particularly high at vocational high schools, where the participation rate has reached almost 23%.

Several cities, including Paris, Bordeaux and Rennes, have seen thousands of people take part in various rallies, with more protests planned in the afternoon.

Meanwhile, one of the country’s ministers, commenting on the strike on Tuesday, accused its participants of not adhering to the “culture of dialogue.”

“I understand that a certain number of employees may express expectations of improved purchasing power. But I tell them that in Europe, we are the government which has protected its residents the most in terms of inflation,” Christophe Bechu, the minister for ecological transition, told Europe 1.

The official emphasized that strikes are further aggravating a state of affairs that is already difficult enough due to “the war in Ukraine” and the broader economic situation.

www.rt.com/news/564901-inflation-france-strike-government

Massive protests against the high cost of living met with a heavily-armed police crackdown in Paris on Tuesday. Tens of thousands of striking union members and their supporters filled the city streets to denounce President Emmanuel Macron’s economic policies and demand better wages in the face of massive inflation.

www.rt.com/news/564932-paris-protests-unions-police-video

Thousands took to the streets of Paris on Sunday, to protest the high cost of living. The demonstrations were called by the left-wing parties that oppose President Emmanuel Macron.

Millions of British households are being forced to skip meals or buy cheaper food due to the rising cost of basic products, a consumer watchdog group has said, citing a new poll.

More than eight in 10 people in the UK (85%) are changing their eating habits in response to the rising cost of living, consumer champion Which? said on Thursday. The most popular way of coping with inflation is to seek promotional offers, which is what more than half (55%) of the respondents reported doing.

A total of 50% said they were switching to cheaper products that they didn’t buy previously. Around one in five said they had started buying more frozen (18%) and microwave-ready (5%) foods to reduce their grocery bills, they explained.

Of those who said they were in a very difficult financial position, almost all (99%) said they were saving money on food in some way, while half (50%) reported skipping some meals altogether. The same was true for over a quarter (26%) of those who described their financial situation as “quite difficult,” and for 12% of all people surveyed.

EU inflation smashes historic highREAD MORE: EU inflation smashes historic high
Almost half (47%) of those who reported living comfortably said they were also trying to save some money on food.

The shift in behavior comes with potential ramifications for people’s wellbeing, Which? said, with almost half (46%) of consumers saying they found it hard to eat healthily, compared to the time before the crisis. The share rises to 78% among those struggling financially.

“The devastating impact of the cost of living crisis is, worryingly, leading to millions of people skipping meals or struggling to put healthy meals on the table,” said Sue Davies, the group’s head of consumer rights and food policy.

She urged supermarkets to sell more products in the budget ranges that are also healthy to help those in a tough spot.

The report was based on an online survey conducted by Yonder involving 2,791 UK adults, the results of which were weighted to be nationally representative.

The Consumer Prices Index (CPI) in the UK rose by 10.1% in the 12 months to September, according to the Office of National Statistics. Rising food prices made the largest upward contribution to the change since the previous month, it said.

www.rt.com/news/565050-uk-consumers-cost-food