Study Abroad Content Specialist
The United Kingdom witnessed a sudden increase in cost of living during the year 2021 to 2022. The annual inflation rate rose 41-year high to 11% in October 2022. The high inflation rate is responsible for rising cost of living in UK. As of December 2023, the inflation rate was recorded as 4.0% which was slightly higher from 3.9% in November 2023. The inflation rate in October was much higher and stood at 4.6%.
Though the inflation rate has now decreased, the prices are still higher compared to last year. According to the recent trends, the inflation rate is likely to decrease throughout 2024, though a slower rate compared to the previous year. This also projects a lower price of energy and reduction in inflation on consumer goods and services.
The factors that contribute to high inflation rate have different aspects from both domestic and international sources. There was a high demand for consumer goods at international level during the COVID-19 pandemic, which led to supply chain disruptions. Due to which the energy prices significantly increased, and it became even worse during the Russia vs Ukraine war. The inflation was severely affected due to some domestic factors. This includes strong pay growth, shipping routes disruptions, notably by the Houthi rebels in the Red Sea.
Changes in Cost of Living in UK for International Students
The supply chain disruptions due to geopolitical tensions have led to significant increase in food prices. As of December 2023, the food prices were nearly 8% higher than last year. On the other hand, the energy prices and fuel cost witnessed a surge in 2022 due to the conflict between Russia and Ukraine. With significantly rising in cost of living in UK, it has become difficult for international students to budget their studies.
Students currently studying or planning to study in UK are likely to face difficulty in budgeting in their overall living expenses including transportation, food, housing and other expenses. Till this year, the highest number of UK students visa was offered to Indian students. Now it will be harder in the coming years to meet educational and living expenses in UK for Indian Students. At present, the average tuition fee for international students is 14,000 GBP as per UK Council for International Student Affairs. This is comparatively higher than tuition fee for domestic students, which stands at around 9,000 GBP.
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