Consumers hoping to become debt free could be facing an uphill battle as the price of essentials is likely to carry on rising.
Joel Segal, lead partner of consumer products at Ernst and Young, told BBC Radio 4’s Farming Today rising food and energy prices could lead to financial strain for consumers.
Escalating costs are the result of high inflation and a general food shortage, he suggested.
Consumers face difficult decisions when it comes to how they will spend their disposable income, Mr Segal suggested.
He noted that Britons will have to consider whether they are willing to spend less on clothes and if they are willing to switch from eating organic chicken to free-range or mass-produce.
In addition, Mr Segal highlighted that vulnerable members of society – such as older people – could be hardest hit, with those with limited disposable income having to make “some tough choices between eating [and] heating”.
The last year has seen food price inflation rise by over seven per cent, with fuel prices up by 19 per cent and utility prices rising more than eight per cent, according to Alliance Trust.