Petrol prices are soaring, food prices are going through the roof, teachers are striking and recession is an ever-present threat. It is as if the clock has turned back 30 years to the 1970s - a decade when the UK economy teetered on the brink of bankruptcy, shortages loomed and David Bowie topped the charts.

We have not quite hit the economic calamity that characterised the decade when Ford Cortinas and flares were chic. And Gordon Brown is unlikely to have to follow his predecessor, Jim Callaghan, who in 1976 begged the International Monetary Fund for £2.3 billion in emergency funding. Nor are interest rates expected to reach the crippling 17 per cent of 1979.

But the threat of recession is here and as bills soar, households are under increasing pressure. Here are our tips for surviving as the economy takes a turn for the worse.

Cut costs at the pumps

Families are paying £35 more a month for petrol than a year ago. The price of crude oil has shot up 76 per cent over the past year, hitting nearly $120 (£60) a barrel - way above the $101 it reached in real terms at the end of the Seventies.

Motorists have seen the average price of unleaded petrol jump 18 per cent from 93.5p this time a year ago, to 109.9p last week, while diesel is at 119.8p. Petrol is expected to reach more than £1.12 a litre this month amid fears of a fuel shortage sparked by last week's strike at Grangemouth, Scotland's largest oil refinery.

Ensure that you are not paying over the odds by using the website petrolprices.com, which finds the cheapest fuel in your area. Once you have registered, type in your town or postcode and the site will list the five cheapest stations in your area. You can keep your search local - within a two-mile radius - or extend it to 20 miles. It will also search according to petrol type: unleaded, super unleaded or diesel.

Beat bulging grocery bills

Food-price inflation has pushed up the cost of a typical family's annual shopping bill by about £780 over the past year. Consumers are paying 28p more for a pint of semi-skimmed milk and the cost of a dozen medium free-range eggs has leapt by nearly 50 per cent, from £1.75 to £2.58.

But you can save hundreds of pounds every month by doing a little online research. Mysupermarket.co.uk compares the cost of products in the four big UK supermarkets: Tesco, Sainsbury's, Asda and Ocado (Waitrose). You create a shopping basket of the goods you normally buy and it calculates how much the shopping would cost in each of the stores. It claims that the average family could save about 20 per cent on the weekly shop, about £1,000 a year.

“Shop-bots”, such as pricerunner.co.uk and shopping.com, can help you to scour the internet to find the cheapest deals on consumer goods. Shoppers can also earn cash back on money spent on sites such as quidco.com and topcashback.co.uk. These sites earn commission - on users' online purchases when they click through to partner sites - which they pass back to users in rebates or cash.

Fight rising fuel costs

Hard-pressed households have been hit with fuel rises of about 15 per cent this year and rising oil costs are expected to drive prices even higher.

Energyshop.com, the comparison website, says that you can save an average of £150 a year by switching to the cheapest supplier in your area. Joe Malinowski, of Energyshop, says that the threat of further rises means that now is a good time to switch to a capped deal. These guarantee that the tariff will not rise above a certain level but is free to fall in line with any drop in general market rates.

He says: “Switching to a capped deal now means that you may pay extra over the summer, but as things stand, these deals are likely to save you money once retail prices start moving up again.”

For a full list of comparison sites go to the gas and electricity watchdog website at www.energywatch.org.uk.

Inflation-proof your finances

Many savers are effectively losing money in their deposit accounts. Using the Government's preferred measure of inflation, the consumer prices index (CPI), which stands at 2.5 per cent, a higher-rate taxpayer needs to earn at least 4.2 per cent to beat tax and inflation. A basic-rate taxpayer needs to earn 3.2 per cent.

To beat the more comprehensive retail prices index (RPI), at 3.8 per cent, a higher-rate taxpayer needs to earn 6.4 per cent, while basic-rate taxpayers need 4.8 per cent.

Index-linked savings certificates from National Savings & Investments (NS&I), which are backed by the Government, are tax-free and guaranteed to keep pace with the RPI for a fixed term. The return is made up of a set interest rate plus RPI, fixed for three or five years. The three-year certificate is paying RPI plus 0.25 percentage points. This gives a rate of 4.05 per cent and is equivalent to 6.75 per cent for higher-rate taxpayers and 5.06 per cent for those in the basic-rate tax band. The five-year certificate pays RPI plus 0.35 points. You can invest up to £15,000 per issue, so you could shelter £30,000 in both the three and five-year plans.

The Inflation Buster Isa from Leeds Building Society tracks the RPI and pays a bonus of 2 per cent. If you make any withdrawals before May 2010, however, you earn a lower rate.

Shift your debts

Despite last month's cut in the base rate, the cost of borrowing is rising. It makes sense, therefore, to pay off as much debt as possible and transfer your remaining debt to a credit card charging 0 per cent interest, or to a competitive loan.

For example, £5,000 on a Barclaycard at 14.9 per cent and repaid at the minimum of 2.25 per cent, or £112.50 a month, would take five years and six months to pay off and would cost a total of £7,425. But if you switch to Virgin Money's credit card with a 0 per cent deal for 15 months, pay the minimum 3 per cent, or £150 a month, you will clear the debt in three years at a cost, including a £149 balance-transfer fee, of £5,494.

Insure your car for less

Motor premiums are expected to rise by an average of 5 per cent this year, according to Confused.com, the comparison website. But drivers who shop around can find cheaper deals. Cohabiting couples can also save an average of about £100 by making a partner an additional driver on their policies, according to TescoCompare.com.

Return of the inflation monster?

Investors will be praying that we are not heading for a repeat of the Seventies, when inflation, which erodes investment returns, was out of control, soaring to 25 per cent in 1975.

The UK stock market went up by 171 per cent in nominal terms during the decade, but UK shares made only 0.4 per cent a year after inflation, according to Barclays Capital, the investment bank. Annual property returns were 3 per cent, and bonds and cash fell by 3 per cent a year, in effect losing investors' money.

During the worst period the UK's stock market plummeted 73 per cent in 1973 and 1974, making the 20 per cent drop of recent months look tame.

Inflation is much lower now, but still a problem. It is recognised widely that the official measures, the consumer prices index (CPI) and retail prices index (RPI), underestimate how quickly prices are rising. This is because some of the most common costs, such as utility bills, food and transport, are rising fastest.

This affects companies as well as households. Industry is facing its biggest increase in costs for 18 years, according to the Confederation of British Industry. And it is not only a British problem; inflation in China is running at nearly 10 per cent.

Ted Scott, manager of the F&C UK Growth & Income fund, says: “We could get stagflation, a period of little or no economic growth and higher prices. That would be bad news for equity markets, and not only in the UK. The emerging markets are quite unstable because inflation is going up there as well.”

During the Seventies only investors in commodities, a traditional inflation hedge, did well - up 7 per cent. Oil made 19 per cent a year in real terms. Trevor Greetham, manager of the Fidelity Multi-Asset Strategic fund, cautions against rushing into commodities because they have already had a good run. “It can only be a matter of time before slower global growth leads to weaker prices,” he says.

However, Mr Scott thinks that gold and silver could be worth buying if inflation remains high. The easiest way to do so is via exchange-traded or managed funds, such as JPM Natural Resources. He also tips companies that can pass on higher costs to customers and hold up as the economy slows. These include Tesco and Reckitt Benckiser, which owns brands such as Nurofen and Harpic.