UK inflation rate jumps to 3.5%: Finance experts reveal how to manage financial anxiety

Figures released this morning have shown that the UK inflation rate has now jumped to 3.5%. According to data from the Office of National Statistics, this is the highest increase since February 2024.

This has sparked a national concern over rising household bills, following the dramatic increase of water, gas, and electricity prices in April.

Recent research suggests that energy, council tax, and water bills have risen by a combined average of £391.

In order to help manage the financial anxiety associated with the UK’s inflation increase, Trajan King, a finance expert at Zellix, has offered some essential guidance at this time.

“It’s important to remember to stay calm and take time to reflect in order to manage financial anxiety over the next few days.

“Now is the perfect opportunity to assess your monthly budget. Are there any excess subscription fees, impulse purchases, or luxury services that you could afford to cut out? Taking the time to assess and rebuild your monthly budget is a highly effective way to stay ahead of the curve and will help you to feel more prepared during times of economic uncertainty.

“In your monthly budget, ensure that you’re clearly establishing key expenses to identify areas where you could potentially save money. This will help you to ensure that you have a healthy amount of money stored in a savings account. If you don’t have a savings account, then now would be the time to start looking into one. While the increase in inflation shouldn’t cause any panicked reactions, it’s always sensible to ensure that you have a sustainable amount of money stored in case of unexpected circumstances.

“If you’re worried about job stability over the next few months then take the time now to ensure that your CV is as up to date as possible. It’s also a great opportunity to ensure that you’re signed up to job networking platforms like LinkedIn.

“Heightened household bills over April have already sparked conversations on whether it’s a good idea to start preparing for an upcoming recession. It’s always a good idea to prioritise financial responsibility, so there’s no harm in taking some initial steps in preparing for a recession but remember that the rising inflation shouldn’t be used as an excuse to rush into any financial-related decisions.

“The prospect of an impending recession is understandably going to cause a lot of stress, which is why it’s so important to ensure that you’re looking after your mental health in the coming weeks. Ensure that you’re staying up to date with the news, but don’t obsess. Remember to take the time to unplug and communicate with those around you if you’re feeling anxious. Focus on what’s within your control, rather than what’s happening on a global scale.

“If you’re prone to suffering from financial anxiety, then it may be valuable to spend less time on social media over the next few days. The media has a habit of sensationalising events, which only increases panic levels. Remember to take time away from your phone if you’re feeling anxious and remember not to take media speculation as fact.

“The UK has been dramatically impacted by rising energy costs over April, which is why it’s so important to ensure that you’re looking to cut down on your energy bills wherever possible. Why not try running your dishwasher and washing machine at night when energy costs are lower? Investing in a pair of blackout curtains can also help to trap heat within the home, reducing heating costs over winter.

“You may even consider using a power-consumption meter to easily monitor energy-draining household appliances, acting as a helpful reminder to unplug devices that aren’t in use. Ultimately, the little things will add up when it comes to keeping costs down on rising energy bills.”