Inflation rates have hit 40-year highs, and interest rates have been raised to their highest level in 15 years.
As well as individuals, businesses have been affected through wider implications on the economy, with people cutting back on spending as a result of the cost of living crisis.
ShefNews spoke to people in Sheffield about how they have been affected by these changes, and an economist from the University of Sheffield explained what this all means.
Dr Daniel Grey said: “What’s concerning is that they’re raising interest rates in a period of low growth, so by doing that they could be pushing the economy back into a recession.”
It is unclear what the Bank of England and Jeremy Hunt will do in the coming months.