Does the arrival of your pay cheque create feelings of excitement at planning where you'll go to spend it, or emotions of anxiety at how you'll make ends meet?
Inflation has seen dramatic changes in recent years. After the global financial crisis in 2008 prices were rising at an annual rate of roughly 5%. Though the inflation rate fluctuates throughout the year, thankfully it's stayed below 5% in the past five years, with 2014's annual rate averaging at 1.5%. Though this might not seem like a significant amount, this can affect our lives on a daily basis and so cumulatively, the compound outcome will see a detrimental consequence on our lifestyles.
Once we've paid off our necessities, what's left of our pay cheque? Can we even afford to save for retirement? Back in the 1950's we could have treated ourselves to a chippy dinner for 10p. We can't even buy a Freddo for that anymore. Now we'd need a few more loose coins in our pockets to fill our hungry stomachs, and that's for those who can even afford to eat out.
Supermarkets set their own prices based on the whole process which includes several variables. When the Scottish independence referendum was a hot topic, questions were raised as to how prices in supermarkets would change, if at all, despite the fact that they face higher distribution costs in Scotland. Now, the question of supermarket prices is constantly in the back of shoppers' minds; we're getting less for our money, but what will be the state of play in the future?
Key Retirement did the maths and put together an infographic (below) illustrating the worryingly steep incline of the cost of living, looking over three eras (1950's, the present day and 2060's). A pint of milk? Houses? Our wages? Take a look at the full article here.
Click on the Infographic to enlarge it