The cost of living is officially soaring, with the latest inflation figures showing that energy bills, second-hand cars and petrol costs are all going up in price.
In fact, inflation - the rate at which the cost of living is going up - has hit its highest level for nearly ten years, according to the Office for National Statistics (ONS) yesterday.
Inflation was 4.2% in October, up from 3.1% in September, the latest consumer prices index said.
The ONS said the rise was driven by rocketing energy bills after a 250% leap in wholesale costs.
Second-hand cars and the cost of hotels and eating out also accounted for the steep rise.
The Institute of Fiscal Studies (IFS) said that households now face extra payments of up to £2,000 per year, as the cost of living is rising across the board.
There has never been a better time to keep your bills down - so here's our guide to beating the inflation hike and cutting your outgoings.
Keeping energy bills low
Energy prices are soaring, mostly due to increases in the cost of gas.
Providers of energy have been going out of business as they cannot pass all these costs on to consumers due to an energy price cap..
This is currently £1,277 a year for people using average amounts of energy.
This cap limits the amount firms can charge the average customer on their default gas and electricity tariffs - usually variable-rate deals.
How are price hikes affecting you? Let us know in the comments below
In the past, the cheapest energy deals were normally fixed rate deals, not variable rate ones - which many consumers ended up on by default when their contract expired.
But now the cheapest thing to do might be to fall onto a variable rate deal. Consumer champion Martin Lewis said in October that this would be the best option for many consumers.
We all know that using less energy brings our bills down - so here is our guide on how to to this, from draught-proofing to washing on lower heats.
But another option is to switch to a current account that offers cashback on bills.
Currently the only one on the market is from Santander - its 123 Lite current account.
You have to pay £2 a month to get this account.
However, you can get 2% back on your energy bills, as well as 3% on water and 1% on council tax, mobile phone and broadband, as well as Santander mortgages.
To get this you have to pay in at least £500 a month into the account, pay out two direct debits, use digital banking every three months - and pay the £2, of course.
You can get up to £5 a month cashback in each tier, so up to £15, plus a one-off payment of £130 if you switch to the bank from another provider.
Paying less for petrol
The price of petrol hit another record high yesterday.
Petrol now costs 145.8p a litre, and diesel 149.7p.
With prices so high, it makes sense to fill up at the cheapest petrol station you can.
This is our guide on how to find the cheapest petrol station, while here are some tips for using less fuel when you are driving.
Also, if you're buying a new car, remember to look at running costs and fuel economy – and perhaps even consider going electric.
Driving down second-hand car costs
A global shortage of microchips and delays in supply lines has held up the production of new cars - and the cost of old vehicles has been soaring in response .
Autotrader said last week that the cost of an average used car had gone up 23.9% in a week.
However, while the average used car price has risen, some are actually falling.
Here is Autotrader's top list of cars which are falling in value on the second-hand market:
- Citroen DS3; average asking price = £4,950 (-0.2% change)
Citroen DS4; average asking price = £5,458 (-2.1% change)
Audi e-tron; average asking price = £65,087 (-2.4% change)
Mercedes Benz CLC Class; average asking price = £4,237 (-4.5% change)
Fiat Punto Evo; average asking price = £2,420 (-5.2% change)
Jaguar X-Type; average asking price = £3,539 (-7.3% change)
Mercedes-Benz GLS Class; average asking price = £56,994 (-8.3% change)
MG MG5; average asking price = £24,479 (-11.7% change)
Cut costs in hotels and restaurants
The main way to reduce hotel and restaurant bills is easy - don't use them as much.
But despite soaring prices we all deserve a treat from time to time, and many will have to use hotels when travelling for work.
The obvious thing to do is reduce spending as much as possible by looking for the best deals, and picking less expensive options where possible.
How to cut food bills
The price of groceries has already gone up by around 20% as shops pass on their own higher costs to consumers.
One obvious way to cut your food bills is to shop in cheaper supermarkets if you can.
The cheapest is currently Lidl, but Aldi often takes the top spot.
If your supermarket has a points system, like Sainsbury's with its Nectar scheme, that can also help save you money when you shop.
Council tax reductions
Some households could see their council tax bills rocket by up to £400 in the next five years, under measures buried in the Chancellor’s Budget small print.
But you may be eligible for a discount on the cost of council tax of between 25% and 100%.
For example, if you are a student you pay nothing, and you get a 25% reduction for living alone.
Carers and apprentices are also among those eligible for discounts.
To get one, contact your local authority, as each one handles its own discount system.
How does inflation work?
Inflation tracks the changing monthly cost of a ‘basket’ of goods and services, such as food, clothing and fuel.
To make the sums easy, this basket is limited and tweaked according to consumer trends.
It is a broad, useful way to monitor how much it costs to buy things.
But, because the basket excludes most items, it may have little relevance to you.
For example, someone who doesn't own a car and is locked in to a cheap energy deal will be relatively unaffected by the latest inflation rise.
But if inflation continues to rise it will catch all of us eventually, so it is worth thinking about ways of offsetting this.
