Those on the margin - in work, but with little income headroom to absorb price shocks - will be hard hit. Pressure for wage increases will grow. Those on benefits will suffer. As a nation, we don't yet know the meaning of the word 'austerity' but I've a feeling we will.
There will be two groups of people walking on eggshells. First, the financial sector, and the announcement of City bonuses before Christmas. Secondly the rich class, the new Kulaks. Earning over £100k these days is deeply unfashionable and as the pain bites the wise will disguise their wealth, trade down their cars and shun conspicuous consumption.
All in all, not a happy prospect.