On the surface, there were a few positives in the statistics from the end of last year, however on further analysis of the statistics from previous few months, all is not what it seems.
Price rises and inflation are continuing to rise. The inflation figure (standing at a nearly 30 year high at 5.4%) and how it affects poorer communities has been called into question and is now being reviewed by the ONS. Borrowing and lending has risen, showing that households are now turning to credit in order to pay for living costs. This is further illustrated in the slowing of the decrease of the levels of credit card borrowing.
Increasing fuel prices have hit households hard during 2021. Prices have finally fallen however this is nominal.
Overall it seems like the UK is in for a challenging financial ride over the next couple of Winter months.
