Cost of Living Crisis Deepens: Why Everything Keeps Getting More Expensive

Wage growth, or the lack thereof, also plays a critical role in the perception and impact of rising living costs. If wages do not keep pace with inflation, individuals experience a decline in their real purchasing power, meaning they can afford less even if their nominal income remains the same or increases slightly. This widening gap between rising prices and stagnant or slowly growing wages exacerbates the financial strain on households and contributes to the feeling that the cost of living is becoming increasingly unaffordable.