Why are young people getting priced out of their own country? As the government considers delaying increases to the youth minimum wage, new inflation data shows exactly what that means: everything costs more while young workers earn the same.

Britain's cost of living has exploded. The Consumer Price Index — the best measure of what families actually pay — jumped from 162,574 in 2021 to 201,118 in 2025. That's a 24% increase in four years. (Source: Office for National Statistics, CPIH (Consumer Prices Index including Housing))

Put simply: if your weekly shop cost £100 in 2021, it now costs £124. If your rent was £1,000, it's now £1,240. But if you're under 21, your hourly wage might not have budged.

The timing couldn't be worse. The sharpest price surge happened between 2021 and 2023 — a 17% jump in just two years. That covers the energy crisis, soaring food costs, and rent spikes across every region. Young workers absorbed all of it on frozen wages.

Here's the maths that matters: someone earning the youth minimum wage in 2021 could afford 24% less stuff by 2025, even if their wage stayed the same. A 20-year-old working part-time while studying isn't just earning less than older colleagues — they're falling further behind every month.

The data reveals Britain's generational trap. Housing costs — the biggest chunk of the inflation index — have surged alongside everything else. Young people face record rents while earning wages that haven't kept pace. Council tax, energy bills, transport costs: all rising faster than youth wages can follow.

This isn't about economics in the abstract. It's about a generation watching their purchasing power vanish in real time. In 2021, a part-time job might have covered rent and groceries. By 2025, it covers less of both.

The cruel irony: while politicians debate whether young workers deserve a pay rise, inflation has already given them a massive pay cut. Every month of delay means young Britons fall further behind. The index doesn't lie — prices rose 3% last year alone, while the youth wage debate drags on.

Britain is creating a two-tier economy: older workers whose wages can chase inflation, and younger ones trapped on rates that buy less each year. The numbers make it clear — this isn't sustainable for a generation trying to build lives in the most expensive Britain in decades.