A few weeks ago, I walked into Tesco expecting to buy a meal deal like a normal person. I left with an empty stomach and existential questions. £4.50? For a sandwich, crisps, and a drink? Is this fine dining?
So yeah — everything is expensive. It’s not just your imagination or your bank app having a laugh. We’re in the middle of what economists call inflation, and what students call pain.
What Is Inflation, Though?
In simple terms, inflation is when prices go up and your money buys you less. It’s why £10 used to cover a decent takeaway and now barely gets you through the first page of Uber Eats.
There are a few main reasons inflation happens:
- Demand-pull: Too much money chasing too few goods (like PS5s in 2020).
- Cost-push: When the cost of making stuff goes up — think fuel, wages, or raw materials.
- Built-in: When businesses raise prices because everyone expects prices to rise. It’s a self-fulfilling “ugh.”
Why Is It Happening Now?
Good question. A cocktail of chaos:
- Covid-19 messed with supply chains — factories slowed down, shipping got weird, and shelves got emptier.
- War in Ukraine disrupted global energy and food supplies (oil, gas, grain).
- Government stimulus pumped loads of money into economies to keep things going.
- Brexit (in the UK’s case) added extra trade friction, raising costs even more.
All of this adds up to: higher costs, higher prices, and us wondering if we really need to buy cheese this week.
What Does This Mean for Us?
As students, inflation hits hard. Rent goes up. Groceries go up. Coffee becomes a luxury. Even subscriptions like Netflix start creeping up — and no one wants to share passwords and the bill.
Wages? They don’t always keep up. That’s called a real wage decrease — when you technically earn the same, but it buys less. And that’s the bit that really stings.
What Can Be Done?
Central banks (like the Bank of England) usually raise interest rates to cool inflation. That makes borrowing more expensive, so people and businesses spend less.
But there’s a catch: higher interest rates can also slow down economic growth… and maybe even cause a recession.
So yeah — it’s a balancing act. A bit like trying to revise and keep a social life going. Tricky.
Final Thoughts
Inflation affects everyone, but it’s especially brutal when you’re living on student loans, part-time jobs, and instant noodles. Understanding why it’s happening won’t make prices go down — but it might make you feel slightly more in control.
And at the very least, you’ll have something clever to say next time someone complains about coffee prices.
