Lucy has seen a marked difference in her club members’ cooking habits. This change is a direct result of how the economy has reacted to soaring inflation rates. At home, the UK is dealing with recently unpredictable inflation numbers. In turn, millions of Americans are changing how they cook to save on ingredient costs and stamps.
Over the last few months, the UK Consumer Prices Index (CPI) annual inflation rate skyrocketed. It was a primary driver of inflation when it peaked at 11.1% in October 2022. As recently as September 2025, inflation had dropped to 4.1% according to the consumer price index, falling to 3.2% as of November 2025. These shifts have led to a wide range of reactions from consumers—from those engaged in Fairs’ new community baking project. Members are beginning to use more of the ingredients they already have at home and are choosing not to buy new items to create their baked goods.
Costa Christou, another member of the Band of Bakers, made resourcefulness a key factor in his recipe choice.
“When I chose a recipe for today, I thought of the theme – but, more so, I thought of what I already had in my pantry.” – Costa Christou
This strategy saves members money and challenges them to be more creative with what’s in their kitchen. Russia’s war on Ukraine, global inflation, and climate crises are exacerbating the cost of certain foods. In the twelve months to November, food and non-alcoholic beverages jumped 4.2%, just shy of the 4.9% jump in October.
Some are things whose costs have shot up. For instance, prices for beef and veal have jumped almost 28% during the pandemic, while other food products have actually decreased in price. Especially welcome for home cooks, olive oil prices dropped 16%, one of the few food inflation breaks so far.
Kevin Peachey, Consumer Cost of Living Correspondent, reports that consumers are growing increasingly weary of this price whiplash. As consumers get used to the new reality of inflation, financial professionals share their thoughts on what this means for budgeting and saving.
Sarah Coles, head of personal finance at investment platform Hargreaves Lansdown, said the development was nevertheless a curious contrast. This recent drop in inflation comes just as the Bank of England had forecast.
“It has been following the path the Bank of England had forecast – peaking in September and gradually moving south.” – Sarah Coles
While these predictions for inflation may benefit savers, not all economic news is kind to those who keep their capital in a savings account. Sally Conway, a savings expert at Shawbrook Bank, said the drop in inflation is good news for family finances. It poses unique obstacles for people with the desire to accrue wealth.
“Lower inflation is good news for household budgets, but it is a different story for savers.” – Sally Conway
Conway emphasized the need for considering savings strategies based on today’s economic realities.
“The key is what happens next. Once the dust settles, it’s worth checking whether remaining cash is working hard enough.” – Sally Conway
The price swings of apparel and footwear demonstrate the recent – and confusing – economic environment. The decline in year-on-year clothing and footwear prices in November of -0.6% was a significant turnaround from the mild increase of +0.3% recorded in October.
Consumers can’t help but shift based on these dynamics. Innovative approaches, such as those widely implemented by Fairs and her baking club, are a testament to their resilience during an economic downturn. Make the most of what you already have and change how you spend your money today. In doing so, you’re better able to prioritize community and creativity without compromising your financial health.