BBC Young Reporter @ LCS

Inflation is causing problems across the world..

I'm sure by now you've all heard about inflation and daily necessities becoming more expensive, but what is inflation? Well, inflation is the term we use to describe rising prices. Derby alone has an inflation rise of 6.2%, and that's not the worst of it... Venezuela has the highest inflation rate with a rise of 1198.0%. Read more to find out how this affects you and your peers.

Why has inflation risen, especially in the UK?

One of the reasons inflation has risen is because of the war with Russia and Ukraine. Due to the Russian invasion in Ukraine, the February 2022 inflation rate had increased from 6.177% compared to the 5.456% it was in January of that same year.

Almost like a domino effect, this affected farmers and vegetable growers because the rising energy prices had practically forced them to cut down on crop yields and or avoid certain foods all together. Farmers also argue that retailers and supermarkets are not paying a fair price for their produce. The government's food tsar has said since supermarkets had "fixed-price contracts" with suppliers, when food is scarce, some produces opt to sell less to the UK and more to elsewhere in the EU.

Another reason contributing to inflation is Brexit. But experts at LSE state Brexit have also played a significant role, increasing prices by 3% a year, adding £6bn to food bills in the past two years, equivalent to £210 per household. This is at a time of falling real wages and real cost of living pressures. 

How does this affect Derby?

The economic factors affecting households up and down the country is also starting to hit local authorities. In addition to rising inflation, increases in fuel, energy and other costs are creating pressures on Derby City Council's budget.

Following the two years where we faced the aftermath of COVID-19 and had to adapt to the needs of their citizens as Derby's economy began to recover from the global pandemic, this situation made it quite difficult for Derby and other local authorities to deliver services as they had before, but with careful management, two years ago we achieved a balanced budget.

Now we face new challenges, such as global events that have driven significant inflationary cost increases that are beyond our control. The current overspend is predicted to reach £10.8 million after the first quarter of the fiscal year. The Council has taken steps to manage the areas where we see the highest demand, and so far, managed to alleviate £3.8 million in possible cost increases by making our savings more methodical, without this, the figure would be remarkably higher.

It is important to acknowledge that the economic factors affecting Derby City Council are being felt by every other authority in the country. Due to the measures we have taken, our financial position is not as serious as many councils are confronting. The issues affecting local government have been recognized by the Institute for Fiscal Studies, the Local Government Association and many more, and we continue to press the Government for more central funding.

How does this affect us?

Now I'm sure you have maybe had to miss out on your favorite meals, that restaurant you have been wanting to go back to for ages, and possibly even a relaxing holiday! But how does this affect our physical and mental health?

Physical health problems significantly increase our risk of developing mental health problems, and vice versa. Nearly one in three people with a long-term physical health condition also has a mental health problem. Rising living costs increase pressure for students to work more, causing stress, anxiety, and burnout as they juggle academic and financial responsibilities.

Financial hardship can affect your mental health and well-being and make you feel alone. If you, a member of your family, or someone you know is struggling with their mental health, help and support is available.

How do we reach out?

Lucky for you, Derby City Council will support you with your cost of living! Whether it is warm spaces, food, clothing or toiletries, housing, bills, income, debt, family, wellbeing and more! Go to Derby City Council to receive support for any of these topics!