The Bank of England’s thinly coded signal that it is not going to move its key interest rate for several months means that we are all being left to cope with inflation as best we can.

That will be a relief for beleaguered homeowners stretching to meet their mortgage payments, but it puts more pressure on companies to raise prices because they can expect no early cut in their interest charges.

Inflation is striding relentlessly upwards, and soaring producer prices already in the pipeline are surely going to hit the high street before much longer.

Thousands of workers are responding to this threat in the most direct way possible, by demanding higher pay. This will of course make inflation worse and more prolonged, but we should steel ourselves for bouts of short-sighted selfishness not seen since the worst excesses of the Thatcher era.

Apart from a pay rise, the only other way to combat a reduced standard of living is to cut costs — or, at least, decide which dents on your lifestyle you can tolerate.

Follow a financial version of the standard dieting advice, and keep a spending diary. Review it every week to see what you can ditch most painlessly.

Many a gym membership is being allowed to lapse in favour of exercising at home, and that Starbucks habit is worth thinking about.

You may decide that the after-work drink is a justifiable reward, but how about the bottled water you gaily lob into the supermarket trolley? If tap water is beyond the pale, buy the still version in bulk.

Three words to stick on your fridge: Shop Around and Haggle. Once you’ve checked out what’s on offer, ask if a retailer or supplier can “improve” on their offer — either cut the price or give you longer to pay.

Be sure you are prepared to walk away, though, or switch to another provider. And don’t expect any help from the banks: they have enough to contend with these days, without being nice to customers.

Fair’s fair

I AM intrigued by the Edinburgh government’s proposals for separate booze checkouts in supermarkets — seems barmy, but I don’t intend to get involved in the delicate question of how the Scots should control their alcohol intake.

Times Recommends

• Bank charges hit us for being human
• Sorry, Father, thou still shalt not steal
• The shed where Santa’s failures go to die