How to calculate your personal inflation rate
The Financial Times has published a free personal inflation rate tool so that you can calculate how much your monthly spending has gone up over the past year and how it compares to the UK national average
One look at how much your energy bill has gone up and you know that your pay is very unlikely to be in line with inflation.
The CPIH all goods index rose by 12.7% in the 12 months to March 2023, down from 13.4% in February, according to ONS figures.
“The slowing in the rate has been caused by a downward contribution to the change from industrial goods, particularly energy, where prices rose by 39.7% in the year to March 2023, down from 48.3% in the year to February,” said ONS. Adding, “This has been partially offset by an upward contribution from food, alcoholic beverages and tobacco.”
Despite a spike in everyday items, many people will have not asked for a raise in the past year and many freelancers may have not increased their rates yet for fear clients would be turned off. Yet, freelancers are businesses and must think like one in good times and bad.
If you actually see in black and white just how much more you are paying for pretty much everything since the start of the Cost of Living Crisis and whether your current rate is sustainable you will have more ammunition to put your rates up to survive.