Most of us can point to the obvious drains on our income; rent, bills, and the increasingly expensive weekly shop.

Listen to this article

What is harder to explain is why, even after accounting for these costs, a persistent sense of financial anxiety continues to linger month after month.

Our recent data from March shows 45% of Brits say inflation is still hitting them hard. This matches with the UK inflation rate rising to 3.3% due to increased fuel prices, airfares, and food. Economists have already predicted inflation could peak at around 4% this year, which would be significantly higher than the Bank of England’s target of 2%.

Of course, official inflation figures tell one story about the economy. How people actually experience their finances tells another.

One in four UK adults has no emergency savings at all, and a further 15% have less than £500 put aside. That means that an unexpected expense or job loss would push these individuals quickly........

© LBC