The cost of living is climbing at an exceptionally fast pace across the OECD, with inflation in several countries reaching levels not seen in 40 years or longer. As steep increases in the prices of energy and food cause hardship for low-income people in particular, labour market and social policies have a crucial role in protecting living standards. They are also needed to share the burdens from high inflation between households, employers and governments. This policy brief discusses the resulting challenges of providing timely and targeted supporting for working-age individuals and their families. The roles of minimum wages and of old-age pensions are the focus of two further OECD policy briefs.