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U.K. Cost of Living
The U.K. is the most popular expat destinations in the World, although the cost of living in this country may differ from one place to another. Living in the U.K. particularly in London, England is expensive compared to other places in the world.
Although the cost of living greatly depend on the individual, but no matter how frugal a person can be, if you are planning to live in the U.K. you still need to be prepared financially. Just because you’ve saved up a lot of cash doesn’t mean that it will be of the same value when changed into pounds.
Why is the Cost of Living in the U.K. SOARING?
The soaring rates of everyday products in the U.K. started in 2008. This was when the cost of living in the U.K. multiplied four times faster than the rate in the country. The average earnings rose to around 27,500 GBP by the end of 2015. The cost of living in the U.K. is again expected to rise another 3% in until summer 2017 which would cause the value of wages to fall.
In a recent report, it was shown in the report that the cost of running a home in the U.K. accounts to 50% of the household income. It means that before buying needs like food, insurance or fuel, this means that the monthly income would only be dedicated to the maintenance of the house and payment of bills.
The Inflation Rate
The CPI measures a typical basket of goods. In some instances this basic basket of inflation could probably rise faster that the official CPI. A research performed by Joseph Rowntree Foundation discovered that in 2013, that there was an increase of 25% in the cost of living, which was 17% more than the official CPI inflation rate.