Inflation at the till, deflation in the office: are we ready for both?

Most of us see UK grocery inflation at 4.9% and think only about higher bills. But here’s the paradox: in the background, AI is already deflationary, making processes faster, driving down costs, even hollowing out roles.

So we’re in a weird double-bind:

• Day to day: the weekly shop still costs more.

• Macro: technology is quietly pushing the opposite way, lower costs, fewer jobs, more efficiency.

The danger? Policy stuck in the middle. Tinkering around VAT thresholds or headline tax pledges won’t cut it when the two forces shaping the economy are radically opposed.

If inflation is sticky, but AI is deflationary, we need more radical moves:

• Direct investment in reskilling, not just subsidies.

• Taxation that balances consumption with automation gains.

• Support for everyday resilience (micro-wins like £14 a week from brand switches matter more than ever).

Because if we don’t adjust, households get squeezed from both sides: rising prices at the till, shrinking wages in the workplace.

What’s your take, should policy lean harder into cushioning the cost-of-living, or into preparing for the AI deflation curve that’s already here?

#LifestyleFinance #Inflation #FutureofWork #AI