How the cost of living crisis is hammering UK households – in charts

Highest inflation rates since the 1980s and wage stagnation have squeezed household budgets

Britain is facing the highest rates of inflation since the early 1980s, with households suffering the biggest hit to their incomes since modern records began. Energy bills are soaring, as is the cost of petrol. Food inflation is at a 13-year high, running at 8.3%, the market research firm Kantar said on Tuesday. The government has announced billions of pounds in emergency financial support, but has faced heavy criticism over its handling of the cost of living crisis as millions struggle to afford the basics.

To set out the scale of the hardship facing families, the Guardian used data compiled by the Resolution Foundation and National Institute of Economic and Social Research (NIESR) to produce the charts below. It shows how years of austerity and low income growth have left those on the lowest earnings with little room to manoeuvre. Those with the least will suffer most.