Have you noticed that prices are creeping upwards? I certainly have, and this article from the BBC explains what may be going on. Some people argue that it will be temporary, and part of the recovery from the global Covid-19 pandemic. Whatever is happening, how does the average Jane or Joe cope with rising inflation and price hikes?
I thought I would ask the members of my Facebook group for their hints and tips, and also the views of some finance experts from the UK Money Bloggers community.
Advice from my Facebook group
I run a Facebook group called My Second Hand and Frugal Life, where the chat is all about saving money and frugal living. This community is full of canny folk who know how to get the best for their bucks. Here is what they say about how to cope with rising inflation and price hikes.
Food
Food is always a good place to begin when you need to save money, and is probably also where you will notice price hikes first!
Kim suggests making a weekly food plan to form your shopping list and include a ‘fridge Friday’ to use up the leftovers. She also finds shops where you can buy dried goods loose very helpful to her budget.
Amanda says, “I’ve just started to use our local community fridge, where they hand out free food which would otherwise go to landfill. You can also use the Olio app to collect food too 
.”
.”Jan Obeirne is another fan of community fridges. She says, “I have been involved in this for a couple of years now, as a volunteer and a user. Even when we go on holiday now I check to see if they have community pantries in the area. We have never eaten so well!”
Bernice suggests that you need to be prepared to change your diet and shopping habits as prices change, giving the following example: “When my kids were little canned tuna was cheap; it isn’t any more. However cheddar is, comparatively, cheaper now. So the topping of a jacket potato has changed.
“If there is a price rise of canned beans, then cook your own in big batches and freeze in portions. Basically, if the things you always bought because they were cheap have gone up, then is time to switch.”
Outside influences
Sarah is watching the price of canned tomatoes: “I’m on a few prepper groups on Facebook and there’s usually people following the signs of potential price increases so I can stay up to date on issues. Currently tin is in short supply as China has been on a buying spree. Italy is struggling to get tin in order to make their tinned tomatoes which is pushing prices up. Already the 3 for £1 offers are disappearing and prices are up 5 or 6p. Definitely one to watch!”
Debbie says, “I try to eat what’s in the cupboard and freezer before I go out and grocery shop. Our church has a community garden and there is great produce in late summer and fall for a donation to youth group. I am grateful for that.”
Buy less & shop around
Lynne advises, “Don’t buy stuff you don’t need, tempting as it may be to buy “bits” at boot sales & charity shops….are they essential? Only use cash – you’ll think twice before frittering your hard earned money. I always compare an hour’s pay to to the cost of stuff that isn’t necessary…then I usually put it back!”
Debbie says, “Resist the temptation to order from Amazon. It is too easy. Shop in person if you are able. I agree with buying second hand items for just about every thing.”
June suggests, “Shop around – no one place is cheapest for everything. Use vouchers when you can.” She says you can get discounts if you sign up to the Farmfoods newsletter via email, and if you shop in Lidl they have some great reductions on their app, which change weekly.
June also advises that you look in world food aisle or Polish food section as they are often cheaper. For example, she has found that kefir is cheaper to buy in the Eastern European section than in the main aisle.
A frugal lifestyle
Clare goes for an all round frugal lifestyle to cope with rising inflation. She says, “I grow my own fruit and veg, keep chickens, shop at charity shops, shop around for food and use Aldi and Lidl for groceries. I sell stuff that’s not been used for over a year, meal plan, go on free days out (for just the cost of the fuel) to the beach, the forest, free gardens, etc and take a picnic.
“I do free yoga using YouTube, and I eat from the cupboard and freezer for a week each month, so only need to buy milk and bread. Also, I have friends round outside for drinks or a barbecue instead of going out. I’ve got lots of free stuff from Facebook Marketplace for some garden projects this year too, which keeps me busy and makes the garden a good space to spend time in with friends or family.”
Utilities
No one in my Facebook group mentioned utility bills. However, these are certainly on the up, so shop around. Use a comparison website before renewing anything, and check to see if you can get cash back on the deal from Top Cashback or Quidco (disclosure: these are my referral links and you get a £5 bonus when you use them).
You might also like to read my post How to reduce your energy bills and Ten great frugal resources to help you save money.
UK Money Bloggers advice on how to cope with rising inflation
And now onto the money bloggers perspective on how to cope with rising inflation.
Invest your savings
Faith Archer from Much More With Less says, “When interest rates are so low, inflation can gobble up the value of savings. It’s vital to keep some cash for emergencies, but if you have money you’re not intending to use in the next five years, do consider stock market investments.
“You don’t even have to pick individual shares but can find low cost funds that will spread your money all round the world. There is always the risk of loss if you sell when prices are lower than when you bought. But by investing, your hard-earned money stands much more chance of keeping up with, or beating inflation.”
Control your debt
Sara Williams writes the Debt Camel blog, so that is where her focus lies. She says, “If you already have debt problems and are making lower payments to your creditors, these may need to be reduced if your expenses go up faster than your income.
“This applies if you have set up the payment arrangements yourself or if you are in a DMP (Debt Management Plan) or an IVA (Individual Voluntary Arrangement). With a DMP and an IVA you should have an annual review, but if price rises mean you are struggling, talk to the DMP/IVA firm immediately and ask for your payments to be lower,. You don’t have to wait for the review.”
Get expert advice
Claire from Stapo’s Thrifty Life Hacks says, “If you’re worried about inflation and price hikes, then speak to a financial adviser. If you have savings, you need to make sure they’re working for you. Otherwise, they will start to decrease in value (in the long term). So have a chat about the best way of investing your cash.
Pinch those pennies
Claire from Money Saving Central favours cutting costs and reducing spending. “With the rate of inflation rising so rapidly, it’s never been more important to penny pinch in every aspect of spending. From bills and groceries to nights out and entertainment, cutting costs across the board is key!
“There are many great resources available on the internet to help people cut costs on everything. It’s important to take the time to see if there are ways to save money on your outgoings, because even the smallest saving can help offset the price hikes we’re currently facing.
Katie Royals from the Twenty Per Cent agrees, saying, “If you’re worried about price increases, see if you can counteract them with additional savings. Do you have your chosen supermarket’s loyalty card for example? Could you switch to cheaper brands of the products you like? (Supermarket own brands tend to be cheaper!)
Pete Chatfield from Household Money Saving thinks there is no need to panic. He says, “Inflation and price rises are part of a healthy economy and something that the government aims towards. As long as they are kept in check, there is nothing to be concerned about. But it also gives you the opportunity to assess your budget and look for alternative products or better deals.”
What do you think? How do you think you will cope with rising inflation and price hikes? Check out my YouTube channel for more ideas on frugal living and saving money.
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