Inflation is rising – but there are practical steps we can all take to get through it

What governments do about taxes is not within our control, but what we do with our own finances is, writes Hamish McRae

Inflation is sweeping across the world and everyone is caught up by it (Reuters)

Inflation is sweeping across the world and everyone is caught up by it. This Wednesday the chancellor, Rishi Sunak, will have used his Spring Statement to revise his tax plans in last October’s Budget. He will probably cut taxes on energy and fuel, perhaps delay the increase in National Insurance contributions, and make some adjustment to the freeze in tax allowances in recognition that inflation is higher than expected..

But what about us? What governments do about taxes is not within our control, but what we do with our own finances is. The Bank of England expects inflation to reach 8 per cent this summer. That is on the Consumer Price Index.

I would expect the older measure, the Retail Price Index, to go above 10 per cent, as it is already 7.8 per cent. You have to go back to 1990 for the RPI to be in double digits, so for most people in the workforce this will be a new experience. How should we cope?