Words by ITV News Deputy News Editor Lola Lawal
Rising energy and fuel bills mean many Brits have been feeling the pinch in 2021 as the cost of living has risen.
In the 12 months to October 2021, inflation rose by 4.2% - the highest it’s been in 10 years. It isn’t set to stop there, however. According to the Bank of England, we could see it increase by up to 5% in 2022.
But what does this mean for the price of your daily shopping trip? Here are five examples of everyday items that you may have to prepare to part with more of your cash to purchase in the new year.
While this might not be of any significance to those attempting to partake in dry January, anyone who wants to celebrate in the new year with a pint may just have to pay 25p more to do so. That’s according to Clive Watson, the chair of The City Pub Group.
Factors for this rise include higher energy prices and the cost of certain materials such as malt, which some local brewers, like Reece Williams in Kent, say they’ve seen increase astronomically.
“It’s pretty much a nightmare”, he explains.
“Malt is a key ingredient for us and the price of exporting it has gone up by 30%.
"Our industry has also suffered from a lack of staff, which has been getting worse due to the pandemic. I’m going to have to raise our prices up by at least 10% in the new year”.
The price of eating a slice of toast could go up by 20% next year, according to the chair of Irwin’s Bakery in Northern Ireland.
“We found there’s been a massive increase in all our energy costs,” Brian Irwin tells us.
“Bread is created with gas and that cost has gone up five-fold. Unfortunately, you can’t substitute that, as you can’t bake with less heat.
"We’re also seeing the costs of logistics go up due to the price of diesel increasing. Bread is a big volume item, so transport and logistics count as a big part of that.”
And in case you’re thinking of making your own bread instead, you’ll have to factor in the cost of essential ingredients like wheat, which has gone up in price too, as Alice Jones from the Agriculture and Horticulture Development Board points out to us.
“The price of bread wheat has risen substantially since the start of the year. We’re seeing tighter supply from places like Germany and France which is where the UK gets it top up wheat. These prices are likely to stay elevated for at least the first quarter of next year”
Shampoo, face wash and soap are all common items we see in our bathrooms; they are now also the latest victims of inflation. A steep rise in commodity costs and supply availability has already caused various businesses to increase their prices this year and according to Brett Bateman, CEO of The Somerset Toiletry Company, this will continue in 2022.
“I don’t think consumers have seen anything yet”, he warns us.
“Everything is having a knock-on effect on pricing. For example, ingredient demand is going up and so the cost of liquid in our bottles has increased by 30% in the last six weeks alone.”
With more people ordering online, there’s been a surge in the materials used to ship items out, which is also affecting companies like Mr Bateman’s.
“Pricing in packaging is going up weekly due to lack of supply from the paper mills. The price of cardboard boxes has gone up by 60% in the last year. It’s going to put a large amount of pressure on some of the small companies.”
Giving our sitting rooms and kitchens makeovers became a popular pastime for many during the Covid pandemic, but this newfound hobby may become more expensive in 2022.
In the past 12 months, the high surge in demand for paint has seen its cost go up by almost 5% and according to John Newcomb, the CEO of the Construction Leadership Council’s Product Availability Group, this is an unprecedented time for the whole industry.
“It’s the biggest increase in material prices for over 40 years. It’s a big issue. Demand is far outstripping supply.
"A lack of availability of material and a scarcity of HGV drivers means we’re seeing price increase of double digits across the board. Anyone building a loft conversion will be paying significantly more than they did last year.”
For local business owners, it means they will have to start marking up their paint products in 2022.
“We’re trying to keep costs down but we’re being forced to increase them due to so many factors. A five-litre tin of paint from my shop used to cost £85 and now it costs £93. These price hikes will continue all the way through next year”, says Alison Bracey, the owner of Bracey Interiors in Bristol.
Whether for a wedding or simply a gift to make someone feel better, flowers are a popular item for consumers in the UK. Their demand soared during lockdown, causing prices to rise earlier this year. With costs continuing to blossom, however, you can expect to pay more for your favourite bouquet in 2022.
“The price of getting flowers from European countries is going up. Growers are putting the costs on to wholesalers who are then putting the costs to florists. I used to pay 7p for lilies and now it’s £1.50”, explains Sam Jayne, the owner of a floral boutique store in Birmingham.
“Brexit hasn’t helped. There’s more paperwork now to get flowers through the Channel, causing big delays. Before, I would get deliveries at 5am and now I get them at 10am, which isn’t great for orders. All of this makes it harder for businesses. I want to make bouquets look expensive for my customers, but I need to save money.”