Cost of Living Crisis: The ‘New Normal’?

Alice Bennett

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In 2021, the “cost of living crisis” began, and it seemed like we talked about nothing else. Many households still struggle to make ends meet. But the crisis doesn’t quite dominate headlines to the same degree. Has the rising cost of living become the new normal?

There has been a notable decrease in disposable incomes due to the sharp rise in food, energy, and housing prices. According to Crisis UK, lower-income households are being “disproportionately” affected. The cost of living crisis is exacerbating homelessness due to the high rent and lack of social housing.

However, with inflation falling, many are hopeful about ending the situation. Or are people just feeling fatigued?

Where Are We Now?

It makes sense some are feeling more optimistic about the cost of living crisis. Inflation has fallen since it peaked at 11.1 per cent in October 2022. As of October 2023, inflation is back down to 4.6 per cent. According to the Bank of England, inflation is still very high but expected to fall further. The current target is a decrease to 2 per cent.

“The effects of the crisis continue to be quietly felt.“

Now, a year after the peak, the end of the “cost of living crisis” is in sight. For many, the crisis is a thing of the past, like Covid-19. But, like the pandemic, the effects of the crisis continue to be quietly felt. 

The Mental Toll Of The Crisis

The phenomenon of “news fatigue” has been increasingly observed in recent years. Constantly, people are bombarded with bad news, resulting in a reluctance to stay informed. People don’t want a constant reminder of something that is taking a toll on their mental health.

Feeling fatigued when reading about the situation may signal that you need to take a breather. It’s important to focus on your well-being. However, this can result in knowing little about what’s happening worldwide. 

“This mindset, however, is likely the result of wishful thinking and a degree of privilege.”

The Covid-19 pandemic resulted in a similar nationwide fatigue. The public declared the epidemic was over and decided to move on. This mindset, however, is likely the result of wishful thinking and a degree of privilege. Just because the cost of living crisis doesn’t affect an individual anymore does not mean it’s over for everyone.

Whilst average wages have been rising (and the Prime Minister has technically achieved his goal of halving inflation), prices are still not exactly decreasing.

A Lasting Impact

Many households are struggling with debt, and some have lost their homes. Rising interest rates, designed to combat inflation, have caused chaos in the mortgage market.

Combined with the high costs of private renting and less social housing, it’s no wonder that there is a higher risk of homelessness. There was a 26 per cent increase in people sleeping rough compared to the previous year. Even in 2022, the number was 74 per cent higher than in 2010. Many people point to the current cost of living crisis as a major contributing factor.

“Whether you’re bored of talking about it or not, the devastating impact of the cost of living crisis will be seen for years to come.”

The acute crisis may be over. But this situation has left a lasting impact on people’s livelihoods, especially the most vulnerable. Normalising the cost of living and using fatigue as an excuse to neglect it means downplaying the crisis. As a result, fewer people are pushing for the policies and measures to help those most in need.

Whether you’re bored of talking about it or not, the devastating impact of the cost of living crisis will be seen for years to come. 

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Featured image courtesy of Josh Appel via Unsplash. No changes were made to this image. Image license found here.