Households are feeling the chill from rising living costs, with UK inflation jumping to a near-decade high.

The rate of Consumer Prices Index (CPI) inflation has increased to 4.2% – the highest level since December 2011 – according to figures from the Office for National Statistics (ONS).

Household energy costs and petrol prices are pushing up bills, while supply chain disruption has had an impact on many sectors. The approach of Christmas will place yet another squeeze on household wallets – particularly with expectations that inflation could accelerate further in the months ahead.

But there might be some steps households can take to partially offset some of the price hikes and make a bit more wriggle room in their budgets…

1. Take a look at your savings

Interest rates on savings are below the rate of inflation, so the value of those savings is effectively being eroded.

Many people have money sitting in high street bank accounts paying annual rates as low as 0.01%. For savers earning little or no interest, it’s worth finding a deal which, while it might not beat inflation, will at least have a better rate.

It may also be worth taking an overview of all your savings pots and working out what might potentially be better off invested.

As a rough rule of thumb, it’s wise to keep some kind of short-term cash buffer – experts suggest people should have enough “rainy day” savings they can easily access to cover around three to six months worth of outgoings.

2. Don’t let household bills just roll over

Traditionally, households were able to shop around to save on their energy bills, but surging gas prices mean cheap deals have vanished. However, Ofgem’s price cap does at least provide a price ceiling for energy customers on default deals.

There might be other ways you can save on household bills – by making sure you don’t simply auto-renew your car and home insurance and broadband contracts, for example. Make the most of comparison websites to find the best deals.

3. Compare prices before you buy – and see if you can cut the cost even further

Try switching some of your favourites at the supermarket for own brand items and making the most of cut-price food apps such as Too Good To Go (toogoodtogo.co.uk).

And with Christmas on the way, look out for a bumper crop of codes and discounts on websites such as Quidco (quidco.com) and TopCashback (topcashback.co.uk). You could also set up price drop alerts for items on your shopping list on websites such as Alertr (alertr.co.uk) and Amazon price tracker CamelCamelCamel (uk.camelcamelcamel.com). PriceRunner (pricerunner.com) also helps people quickly compare prices on items at UK stores.

With petrol prices surging – the average price was 138.6 pence per litre in October 2021, compared with 113.2 pence per litre a year earlier, according to the ONS – motorists could consider using website PetrolPrices (petrolprices.com) to compare fuel prices near them.

4. Ditch or switch your subscriptions

Many of us signed up to subscriptions to keep ourselves entertained during the lockdown – but you might want to trawl through your bank statement to see if there are regular payments still coming out for services you no longer use.

If you do still use some, perhaps there’s a way of getting these services cheaper – for example by switching to another gym, finding out if your existing one has any Christmas offers or comparing pay as you go options with your regular subscription.

5. Hire your Christmas party outfit instead of buying it

The popularity of fashion rental websites has exploded, with renting an outfit rather than buying potentially being kinder to the planet – as well as your wallet.

Hiring could make it easier to go all out with your Christmas attire, without having to wonder how you’re going to get year-round wear of your festive outfit. Why not try Hurr (hurrcollective.com) or Hirestreet (hirestreetuk.com).

6. Sell it

With supply difficulties making some items harder to source, you might find items you no longer use are just what others are searching for – and you could also get a decent price if you’re listing items on websites such as eBay (ebay.co.uk).

Some stores such as Ikea (ikea.com) and Mulberry (mulberry.com) also have “buy back” schemes if you’re ready for a change.