How about the economy and the Life of people in uk?

 The UK economy and its impact on people's lives are complex and have been significantly shaped by a "cost of living crisis" in recent years.¹ Here's a breakdown of the current situation:

The Economy in the UK:

• Inflation: The UK experienced a sharp increase in inflation from 2021 to 2024, peaking at 11.1% in October 2022, a 41-year high.² While inflation has eased significantly since then, the cumulative effect means that households still face a much higher cost of living than in 2021. The Consumer Prices Index (CPI) inflation rate was 4.1% in April 2025.
• Economic Growth: An economic recovery is underway in the UK, with growth projected at 1.2% in 2025 and expected to gain momentum in 2026.³ This recovery is supported by monetary easing, positive wealth effects, and an uptick in consumer confidence. However, weak productivity continues to weigh on medium-term growth prospects.
• Interest Rates: In response to high inflation, the Bank of England raised interest rates between 2021 and 2023. This has led to higher mortgage rates, impacting many homeowners, especially those coming off fixed-term deals. Interest rate rises between December 2021 and December 2023 are estimated to have pushed an additional 320,000 mortgage holders into relative poverty after housing costs.⁴
• Trade: Global trade tensions and specific issues like US trade tariffs can impact the UK economy.⁵ Exports of goods to the United States fell significantly in April 2025, likely due to these tariffs.⁶ The overall trade deficit widened in the three months to April 2025.⁷
• Unemployment and Wages: The unemployment rate was estimated at 4.6% for February to April 2025. While average weekly earnings in nominal terms (not adjusted for inflation) have seen growth, real median household incomes (adjusted for inflation) fell in recent years.

Impact on People's Lives (The Cost of Living Crisis):

The high cost of living has had a profound impact on households across the UK, though disproportionately affecting low-income households.⁸

• Higher Everyday Costs: People are still reporting higher costs for essential items.⁹ Food shopping, gas, and electricity bills have been major drivers of increased living costs.¹⁰ Rent and mortgage costs have also risen significantly.¹¹
• Reduced Real Incomes: Real median household incomes fell by 1.6% between 2019/20 and 2022/23. For the lowest 10% of incomes, the fall was even sharper at 6.6%. Despite lower inflation, real household incomes fell again in 2023/24.¹² This means that even with nominal wage increases, many people's purchasing power has decreased.
• Increased Material Deprivation and Food Poverty: The proportion of working-age adults unable to afford basic items has increased.¹³ Food insecurity has risen, with food banks reporting a significant increase in demand compared to pre-pandemic levels.¹⁴
• Financial Stress and Debt: A significant portion of adults report that their cost of living has increased, leading many to borrow more money or use more credit than usual.¹⁵ A substantial percentage of adults would not be able to afford an unexpected, but necessary, expense.¹⁶ Many households are classified as "financially distressed," cutting back on non-essential spending out of necessity.¹⁷
• Housing Affordability: Rent and mortgage payments consume a large portion of household budgets.¹⁸ The average rent in the private sector reached £906 in 2023, with significantly higher costs in cities like London. This pressure on housing affordability is pushing more people into financial difficulty and increasing the risk of homelessness.¹⁹
• Impact on Wellbeing: The cost of living crisis has also impacted mental health, with charities reporting an increase in related issues.²⁰ Surveys show a decrease in reported levels of life satisfaction and happiness, and an increase in anxiety compared to pre-pandemic levels.
• Changed Spending Habits: People are responding to higher costs by spending less on non-essentials, shopping around more, and reducing energy consumption at home.²¹

Regional Differences:

The impact of the cost of living crisis is not uniform across the UK. London generally has the highest salaries, but also significantly higher living costs, particularly for rent. Other regions may offer lower salaries but more affordable living expenses. Low-income households are particularly vulnerable to rising food and energy prices, as these make up a larger proportion of their spending.

In summary, while there are signs of economic recovery and inflation has come down from its peak, the cumulative effect of price rises and higher interest rates continues to put significant pressure on the cost of living for people in the UK. This has led to a noticeable decline in real incomes and an increase in financial hardship for many households, particularly those on lower incomes.