If you think your money isn’t going as far as it did, just wait for what’s to come.
Millions of households have already seen energy bills jump, and probably noticed other things like the weekly shop and filling up the car get more expensive.
But there is a potential tsunami of price rises on the way that will deal a punishing blow to many people’s finances.
For some it will mean having to think twice about what they spend money on.
For others it will be far more serious, leading to having to go without heating or even food, and plunging some into debt and poverty.
Here we spell out how the cost of living crisis is likely to hit you in the pocket, when, and what you can do about it.
Groceries
Many of us have started a new year diet after overdoing it on festive food.
And if you thought the cost of the Christmas blow-out had gone up, you are right.
Data this week showed grocery costs rose 3.5% in December - adding £15 a month to the average shop.
Some items have shot up more, with fresh beef rising 12% in price in the past year, savoury snacks by 11%, pears by 16%, and apples by 20%.
Analyst Clive Black from Shore Capital reckons food inflation will peak at around 5% at Easter - adding over £21 to the average family’s monthly shopping bill.
Helen Dickinson of trade body British Retail Consortium warns: “The trajectory for consumer prices is very clear: they will continue to rise, and at a faster rate.”
My advice: Supermarkets have been cutting back money-off deals, but there are still plenty around.
Compare prices: websites such as Trolley.co.uk give daily updates.
If you regularly shop at one supermarket, sign-up for its loyalty scheme. Tesco’s Clubcard, for example, offers exclusive deals.
Energy
This is going to be the big shocker.
If you are one of the 11 million on a standard tariff, your bill jumped by an average £139 a year last October after a price cap was hiked.
That is small fry compared with what is expected from April 1, when the cap is next lifted.
Experts forecast it could jump more than £700, from the current average £1,277 to £2,000 a year.
All will become clear on February 7, when Ofgem announces the scale of the rise.
If that weren’t bad enough, there could be another budget-busting wave of increases this October, badly timed just for winter.
My advice: I’d love to say there was an easy way to save a packet by switching supplier - normally the best route - but this has become tricky.
Cheap fixed rate deals have disappeared and the ones on offer are typically a lot more than being on a standard tariff.
They might be worth investigating, especially tariffs reserved for existing customers, but watch out for costly “exit fees” - penalties for ditching the deal early.
Finally, make sure you’re getting the £140 Warm Home Discount if you are eligible. Speak to your supplier about that and any other help they offer, especially if you fall behind with payments.
Council tax
Millions of families will be hit with a council tax hike of at least 3% in April.
That will add £57 to the average Band D council tax bill, which is currently £1,898 a year - up from £1,439 in 2010/11.
As many as a third of England’s councils will be allowed to raise tax by even more than 3%.
My advice: Sadly there is not much, but you could be eligible for a discount.
For example, if you are the only adult in your home, you get 25% off.
And you could get a reduction - sometimes called Council Tax Support - if you are on a low income and on benefits.
Borrowing costs
A silver lining of the Covid crisis has been to keep borrowing costs low.
In the face of the pandemic, the Bank of England slashed its base rate - which influences what all of us pay - to just 0.1%.
But a surge in inflation saw the Bank up it to 0.25% before Christmas.
This hasn’t triggered an across-the-board rise in mortgage rates yet, probably because of competition among lenders.
It is different for personal loan rates, with lenders sneakily upping them from an average 6.27% to 6.43% even before the Bank of England’s rise.
That has added just £4 to the typical annual cost of a £5,000 loan but rates are only heading one way - up. Another 0.25% would add £7 a year to the same loan.
My advice: Rates for savers are rotten but competition means it is well worth shopping around if you need a loan.
Consider a 0% interest credit card for balance transfer or purchases but, whatever you do, ensure you keep up payments and know when the introductory offer ends.
Train fares
True, the number of people travelling by train has tumbled during the Covid lockdowns.
But, assuming Omicron subsides, that could change in the coming months as more people return to commuting.
And in March, those commuters face the biggest fare hike for almost a decade - 3.8%.
Someone commuting from Oxford to London will now pay almost £6,700 a year, an increase of £245, while the commute from Macclesfield to Manchester will rise by £84 to £2,284.
My advice: If you need an annual season ticket, get one before prices rise.
Working some days at home and some in the office? Consider a flexi season ticket that offers eight days of travel in 28 days for any time between two stations.
For other journeys, book up to 12 weeks in advance to get the best savings.
Income tax
The threshold for income tax typically rises each year in line with inflation.
But last March Chancellor Rishi Sunak announced he was freezing them for five years.
So on April 6 the personal allowance will be frozen at today’s £12,570, while the higher-rate 40% allowance will be frozen at £50,270.
As a result, millions will either start paying tax for the first time or be pushed into the 40% tax bracket.
Someone earning £30,000 will pay £180 extra in tax than if the threshold had risen with inflation, assuming a 3% pay rise.
My advice: I’d like to say otherwise, but sadly there is little you can do about it.
National Insurance
NI is rising by 1.25 percentage points in April.
For employees, it will go from 12% to 13.25% on earnings between £9,568 and £50,270 a year, and from 2% to 3.25% on earnings above £50,270.
Someone with total taxable earnings of £30,000 will see their total NI bill jump from £2,451.84 to £2,707.24. That’s a rise of £255.40 a year.
My advice: Like income taxes, there is little workers can do - unless the government announces a late change.
State pension
Here there is some good news - with a sting in the tail.
The state pension will increase by 3.1% from April 6.
Seems ok until you realise that inflation could be rising at more than double that - 7% - by then.
The “old” basic state pension for those who retired before April 6, 2016 will rise by £4.25 to £141.85 per week, while the “new” flat-rate state pension will rise by £5.55, from £179.60 to £185.15 a week.
My advice: If the Government had stuck to its “triple lock” pledge, pensions would have risen much more.
Ensure you are getting the help you are entitled to.
Each year up to £2.2billon of Pension Credit and Housing Benefit goes unclaimed by older people.
