Letter from Aryan from UK to Mahi in Bangladesh

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Sender: Aryan Kamal

Senders Location: Glasgow, UK 

Receiver: Ali Haser Al-Amin

Receiver Location: Rajshahi, Bangladesh


Hey there, Ali!


I’m really excited to have you as my pen pal for this task. I have been asked to write you a letter about many different topics however I have chosen to tell you about energy costs and the UK inflation rates! In November 2021, I participated in a COP-26 Public Speaking event where I discussed my views on Climate Change. I avoided overheard stereotypes and used words that could be acted upon. So, following that, energy costs were one of the main topics I am still thinking of to this day. Do you think of it too? Let’s delve deeper into this.

Do you know what the number one reason is why energy prices have risen so much? If you did not, it is because Russia invaded Ukraine. I found a source that stated: “between 23 February, the day before the start of the conflict, and 31 July (27 September), European gas and electricity wholesale prices increased by 115% (109%) and 237% (138%), respectively. As the war escalated, price tensions spread from the spot market to the whole term structure of futures energy prices, suggesting that the cost of energy will remain higher for longer”. Europe's heavy reliance on energy imports from Russia explains the marked response of local energy prices to the war in Ukraine.

This isn’t our only problem either. Oh no, inflation is also a huge factor. One of the government’s macroeconomic objectives is to have an inflation rate of a steady 2%. The UK Inflation Rate is at 10.50%, compared to 10.70% last month and 5.40% last year. This is higher than the long-term average of 2.70%. I remember when I used to walk into my local shop for a pack of sugar and Flora butter. Used to not even think twice before buying it and now I look at it with my jaw dropped. Can you imagine the look on my face when I saw that 750 grams of butter are £5.80? The cost of living is nearly unbearable and having to pay this much just to give some flavor to my toast or get the pan started is another level.

Anyways, enough of me rambling on about the negatives as there is a bright side! You can do a lot to save money on your gas bills, water bills, and even your weekly shopping prices. As you read this right now, there might be one or two lights in your house on, costing you money and reducing your purchasing power. Stand up, walk around your house, and turn off any unused sockets and any lights that may be on. You’ll be surprised at how much electricity you end up wasting. I’m a victim of this but I am working on it as I am soon moving out, so I’ll be a lot more cautious of the whole thing! As with your weekly shopping, in the UK we are lucky enough to have stores like Aldi and Lidl that sell their own branded products. For example, Weetos (a popular kid’s cereal) will cost you £3. Now that is crazy! Aldi has their own branded version; it tastes the exact same but it will only cost £1. Branded oats cost £4. Aldi’s porridge will cost £1. The flavor difference is hardly recognizable and it’s still extremely delicious.

Stop buying goods you don’t need. Remember, always consider utility. £400 on a designer jacket? Think about the utility you get out of that. You get 0. None! Zilch! It doesn’t provide you with any extra benefit and value so there really isn’t a reason to purchase it. Do your bit, save your money and you’ll stress less about these things.

Thank you.

Aryan

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