Cost of living survey shows we are in for a tough time ahead

Following a survey, the World Economic Forum’s warning that “the cost of living crisis will be the biggest global risk over the next two years” is of major concern and should not be taken lightly.

The survey, which took into account the views of more than 1 200 global risk experts, policymakers and industry leaders, highlighted the huge effect the conflict between Russia and Ukraine will have globally.

Energy and food costs increased sharply

Energy and food costs have risen sharply over the past year as Ukraine, the world’s top producer of sunflower meal, oil and seed, and Russia, the world’s second largest gas producer – remain at war.

Covid has also had an impact on supplies, which also contributed to higher prices. As inflation remains elevated, many experts believe the global economy will suffer a recession this year.

The survey said: “Conflict and geo-economic tensions have triggered a series of deeply interconnected global risks.

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These include energy and food supply crunches, which are likely to persist for the next two years, and strong increases in the cost of living and debt servicing.

Crises risk undermining efforts to tackle longer-term risks, notably those related to climate change, biodiversity and investment in human capital.”

Throw our power crisis into the mix, together with the effect last year’s floods had on our economy, and you soon realise we are in for a tough time ahead.

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