What the budget means for UK cost of living as country ranks among the most expensive globally

This week’s Autumn Budget confirmed that the Household Support Fund (HSF)  or ‘Cost of Living’ payments will be extended from next year which will comes as a relief to struggling families as research shows the UK has the fifth worst cost of living globally. 

The budget also confirmed there will be no higher taxes at the petrol pumps next year as Labour chose to continue the freeze and maintain the temporary 5p cut on fuel duty. 

The UK currently has the 13th most expensive fuel prices according to the international health insurance experts at William Russell, who analysed data on the average cost of food, fuel, and rent to determine which countries have the cheapest price of living. 

UK Cost of Living

As part of their research, the team also revealed which countries have the cheapest cost of living globally. 

Malaysia has the cheapest cost of living, scoring highly across the majority of factors. It ranks especially highly for its cheap fuel, rent, Big Macs, and cola. It’s got the cheapest fuel, the third-cheapest Big Macs and rent, costing £1.87 and £270, respectively, and the fourth-cheapest Pepsi and Coca-Cola, with a cola score of 9.42 out of 10.  

Indonesia follows closely behind in second place. Indonesia also consistently ranks highly across our factors, with the lowest cost of rent for a one-bedroom apartment, at just under £230, the third-lowest cost of fuel, with a score of 9.15, and the third-cheapest basic food items, with a score of 7.18.

The top three conclude with Argentina. Argentina’s low cost of household energy, alcohol, basic food items, and fruit and vegetables are significant contributors to its high score. Argentina scored 10 for its household energy costs and 7.96 for its basic food items, both the highest-scoring country on our list. It also had the third-highest alcoholic beverage score, at 8.86/10, and the second-highest fruit and vegetable score, at 8.73 out of 10.