It's simple. Some people (Camp A) will be affected to the point that they can no longer eat what they want, or heat their homes. Whereas, some people (Camp B) might raise an eyebrow at how much an Avacado now costs at Waitrose, but buy three anyway, because they are loaded.
In my experience, many people will fall in to both camps at some point in their life times. I know that I have.
When I was 18 and living at home, I was on minimum wage. My Mum took a third of my salary for digs, and I never had enough left to spend. I was always borrowing from her, then paying back on pay day, and was usually left with about 20p on pay day to last me the month. A coffee at work was 2p (for context). So the cycle repeated and I borrowed off my Mum again.....
In my 20's, I did well at work, got married to high achiever, invested in shares, and at the height of that marriage (in our 30's), we had a huge detached house 2 posh cars, £100k in investments, and two children who wanted for nothing.
In my mid to late 30's, I discovered that my H was sleeping with several OW, including my best friend. I left him and started over. All of a sudden, I was a single Mum, earning £1200pm, with a huge mortgage and every month I was putting our grocery shop on to several credit cards, which finally hit a total of £38k, which I had to cover by taking out a 2nd mortgage, on an already highly mortgaged house. At that time, the Company I had my shares in crashed, and they were suddenly worth £5k, instead of the £50k they used to be. I had no holidays for several years and things were tight. No hair cuts or nights out etc.
Fast forward to now, and the children have now been through Uni, left home and are completely self sufficient, so I have no dependants (financially). I am now married to someone else and we moved to another area together which is cheaper than where I was, so we wiped £30k off the mortgage. I packed in my £1200pm job and started my own business, which brings in about 3 to 4 times as much. My DH is also on a good salary, so we are on about a £100k household income. After 10 years of being here, the mortgage is now almost repaid.
Had there been a COL crisis when I was a single Mum, there's no way I could have eaten out or gone to the pub. But at this point, I actually can, because our situation allows it. So yes, you will see pubs full of people. They are the people who can still afford it (this time, maybe not next time there is a COL crisis though).
I have seen so many life changes with friends, just like mine. Like my friend who was absolutely minted because her DH earned £150k. Not so minted when he left her and she was on £700pm part time. Kids were pulled from Private school and she lost her home.
Another friend was on the breadline, but then got a few promotions, married a high earner, got 2 inheritances within one year of circa £350k, and she now lives in a £500k house with no mortgage.
My father, owned 3 successful businesses. Lovely house, several foreign holidays a year. Until it all went wrong and he had to file for bankruptcy. He is now okay, but in a retirement flat, with no savings and having to live within his means on a £1k pm pension.
Life is indeed swings and roundabouts. The people who are still having holidays and eating out, are doing well financially right now, and aren't that affected. Maybe they won't be so lucky the next time there's a COL crisis. The people who are currently at rock bottom might be wealthy in 10 years time. Life does indeed spin on a dime.
Thank goodness that there are people still ding okay, and paying their taxes, as at least that's feeding in to the system and helping to pay for assistance for those who might not be doing so well just now.