Wednesday 24th April 2024

Must-know money: Inflation, deinfluencers, and moving out of London

In the current environment with the rising cost-of-living, it’s increasingly important to take better control of your finances. 

Here are some of our favourite money stories this week to help you get your head around your finances. 

UK inflation rate falls, but prices still rising 

James Flander writes for The Sun, as the UK inflation rate falls to 10.1% in January, down from 10.5% in December, according to official data. 

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This is the third month in a row inflation has fallen, but prices are still rising. Falls in transport costs, including fuels, was the primary cause for the easing, as air and coach travel prices dropped.  

Chancellor Jeremy Hunt said: “While any fall in inflation is welcome, the fight is far from over.”  

Household energy bills along with food and drink prices have continued to rise, leaving another interest rate hike on the cards from the Bank of England. This will make the cost of borrowing higher for any loans, credit card and mortgage repayments you might have. 

Total pay in real terms fell by 3.1% in December, while the GDP was 0% in the last quarter of 2022. The Bank of England has predicted a shallow recession as the UK economy is expected to shrink in 2023.  

Deinfluencing – the new viral trend 

In this uncertain economic climate, people are becoming more aware of their purchases and costs. Mabel Banfield-Nwachi writes for The Guardian, as more social media content creators turn ‘deinfluencers.’ 

Influencers typically maintain a certain lifestyle, promote luxury products and influence others into viral and trending purchases. Deinfluencers do the exact opposite – calling out products that are unaffordable, not worth the hype or overrated.  

Larger influencers have refrained from controversial statements they have more to lose, than smaller creators. In the deinfluencers view, it is a ‘honest’ review and feedback to brands for their products.  

The hashtag ‘#deinfluencing’ has over 159.6M views, owing to the ‘follower agnostic’ TikTok algorithm which allows small time creators to go viral. Creators have called out well-known brands, taking a money-saving approach, amidst the cost-of-living crisis.  

According to Jago Sherman, head of strategy at social media marketing agency Goat: ‘Deinfluencing is influencing.’ 

Renters move out of London 

Jess Warren reports for BBC News, as renters leave London at the highest rate in a decade. With rising rents in the city, tenants are now looking for cheaper places to live.  

In 2022, 90,370 tenants left London compared to 62,210 homeowners who moved out of the city. Popular areas included Tandridge, Epping Forest, Sevenoaks, Broxbourne, East Surrey, Essex, Kent, and Hertfordshire.  

Two in five (40%) of tenants moving home chose to leave London in 2022, up from 28% in 2012, and this number is expected to continue rising. This marks an opposite trend to 2021, where for the first time in a decade, more homeowners left London than tenants.  

Work is decreasingly likely to affect moving decisions compared to five years ago, due to flexible and remote working opportunities. Owing to this, the commuter belt in London has far more properties available now as the number of homes on the market have increased faster than those in London this year.  

Photo Credits: Unsplash

Richa Ved

Richa is a young Indian graduate from Warwick Business School, aspiring to find her niche in the media industry. She has a passion for writing and a keen interest in financial affairs. If you don’t find her working, she’s probably having a pizza (her favourite!) and a pint of beer somewhere.

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