Cost-of-living crisis rattles London shopkeepers and commuters
UK inflation hit a 40-year high on in mid-May with a rate of 9%, one of the highest in the industrialized world
As Great Britain is in the center of a cost-of-living crisis, local Londoners are finding themselves in tricky situations that are causing them to make choices on how they spend their hard-earned money, which is not going as far as it used to.
“More than half my income goes to rent, which is 10 pounds an hour,” said Dedeepya Anne, 24, part-time shopkeeper at Happy Socks in Covent Garden. “The national average went from 8.9 to 9.15 [pounds an hour], but it isn’t enough,” said the part-time student, referring to an increase from $10.98 and $11.29. Clearly students such as Dedeepya are being affected, as are other Londoners and people across the UK.
Even after Covid restrictions are being lifted around the country, Britain still finds itself in crisis. London, the most populated city in the UK, is experiencing major inflation, leaving its citizens in distress. London has not escaped the negatives of the Covid crisis that is impacting the entire world, and Russia’s war in Ukraine has caused a spike in gas prices as well.
Young people who are starting out their lives may not be as knowledgeable about how inflation can affect their day to day decisions. But they’re feeling the pinch nonetheless, as they’re not in the highest wage bracket.
“When you move out and have your own place and things sort of happen the way they happened with the cost of living rising, you realize how much it has an effect on your daily life just in terms of even the smallest of things,” said Diellza Grabanica, 24, retail manager at Miller Harris perfume store in Covent Garden.
The varied shopkeepers in Covent Garden know very well that everyone walking through their doors has to make a decision as to what they could or should buy with their own pounds. “We’ve had to actually really budget things a lot more than we thought we would have previously especially when it comes to food,” Grabanica adds. “ And you’re always looking at alternatives, other places to shop.”
With everyone having to make these types of decisions, a shopkeeper’s burden is doubled because not only are there consumers having to make hard choices, but they also have to make those same choices for themselves. This can become a vicious cycle that impacts both the consumer and business owners.
Every aspect of consumer spending is influenced by inflation, from food all the way to transportation. Whereas before, it may have been more manageable for people to have more than one vehicle, now they may have to make the hard choice of sharing one because of things like fuel, insurance, and wear and tear.
Grabanica explained that fees for commuting to work recently took a major hike. “My travel recently went up from 487 pounds a month to 505 pounds a month. That might not be a lot to some people, but you’re paying an extra 10 or 15 pounds a month for travel on top of paying for your insurance for your car,” she said.
London is equally as impacted as other cities around the globe by inflation and cost of living increases that exceed pay increases. UK inflation hit a 40-year high this month at 9%, but the US, for example, isn’t far behind at 8.3%. The key, according to Rasa Ceseviciute, 34, manager at Neuhaus chocolate shop in Covent Garden, is to make the choices necessary to stretch pounds further, sticking to necessities. Despite the rise of inflation, she says, “I think everybody can find what’s best for themselves.”
