The Sky News Business Podcast · Sky News

Cost of living, tariffs and household appliance insurance

·23 min·1 clip

Ed Conway says annual inflation is 3.4%, but prices are still 25% higher than four years ago.

1. The Sky News Business Podcast episode is about the cost of living, tariffs and household appliance insurance. 2. Darren McCaffrey presents, Ed Conway explains the cost-of-living charts, Richard Baldwin discusses US-EU tariffs, and Matthew Cromack and Stephanie Downs join later segments. 3. The episode asks why households still feel pressure when inflation is falling, and what trade policy and consumer services add to that pressure. 4. Ed Conway distinguishes annual inflation from the level of prices and says the latest inflation rate is 3.4%. 5. He says the basket of goods and services is up 25% over four years, which helps explain why shoppers still feel squeezed. 6. He uses OBR-style income projections to show that 10% nominal increases can shrink to 2.5% once inflation is applied. 7. Higher national insurance and frozen tax thresholds then reduce those gains further, with council tax cutting into real take-home pay. 8. Ed Conway says the poorest can end up with flatlining real take-home pay, while a £50,000 income can also fall once council tax is included. 9. He says real household disposable income looks different after housing costs, especially for pensioners who own outright. 10. Private renters and people paying mortgages see take-home pay go down over the same period. 11. The charts show low-income households spending a larger share on food, drink, clothing, childcare and household bills. 12. Ed Conway says the poorest fifth now spends more than 50% of spending on essentials. 13. He also says inflation has become less equal, with lower earners facing higher inflation in recent years than richer earners. 14. Electricity is presented as a major pressure point, because the UK has moved from mid-table to the highest-cost domestic power nation in the comparison shown. 15. Food is treated differently in the charts, and the UK is shown as cheaper than the average of other G7 nations on food. 16. Water bills are shown as another upcoming cost, with poorer families paying more as a share of income. 17. The tone of the first section is data-heavy and explanatory, with Ed Conway talking through charts and comparing income groups. 18. Richard Baldwin’s section is a direct interview with market and negotiation talk about EU tariffs, August 1 deadlines and an anti-coercion law. 19. Listeners interested in household budgets, inflation data and trade policy will get the most from this episode. 20. Listeners wanting a single-topic conversation or a lighter business segment may skip it.

As heard by us

A brisk briefing on why cooling inflation still feels expensive at home.

Business Live makes a familiar macro story feel immediate: inflation may be falling, but prices are still up, and Ed Conway is at his best explaining the gap between annual inflation and the level of prices people actually face.

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Why you'd press play

Why the cost of living still feels high even as inflation comes down.

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